KBRA releases an updated report that tracks several reported metrics within recurring revenue loan (RRL) securitizations.

In this report, an update to our May analysis, KBRA continues to track several key metrics sourced from quarterly collateral loan tapes provided by the issuers of KBRA-rated RRL securitizations, in dashboard form. Changes in such metrics can provide an indication of the general health and credit quality of the portfolios. The May analysis used collateral tapes dated through March 2024, and for this update we utilized reports dated through June 2024 (for more on scope and metrics definitions, see Appendix 1 in the report). While average cash balances and liquidity cushion remain healthy, annual recurring revenue (ARR) was slightly down quarter-over-quarter (QoQ), marking a decline for the first time since Q4 2021. Once again, there were no defaulted assets reported for the quarter. However, some managers recently exited positions where borrowers have either had their debt restructured or entered nonaccrual status owing to underperformance in a higher interest rate environment.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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