Abstract

Shipping container asset-backed securities (ABS) face the challenges presented by a volatile industry, often-strained lessees, and asset supply and demand risks. However, container securitizations to date have been able to navigate these rough waters. Fitch Ratings believes future transactions, if structured with appropriate credit protection levels, can continue to do so. This article discusses Fitch’s considerations in reviewing container securitizations, including an assessment of sector- and transaction-specific risks as well as an analysis of recent collateral trends that could influence transaction performance. Factors discussed in the assessment of container ABS risks include cyclicality, utilization rates, lease rates, asset values, lessee defaults, recoveries, manager (servicer) reliance, asset (container) types, lease types, and lessee concentration. <b>TOPICS:</b>Asset-backed securities (ABS), information providers/credit ratings

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.