KBRA Releases Research – Second Lien Securitizations: HELOC and CES Deals Catch a 2.0 Wind

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. KBRA releases research examining the rapid growth of the second lien residential mortgage-backed securities (RMBS) market, focusing on differences between home equity line of credit (HELOC) and closed-end second lien (CES) collateral, including credit performance, underwriting characteristics, and transaction features. The report also reviews issuance trends and KBRA rating activity. Given the increasingly distinct performance profiles of the two collateral types, KBRA plans to introduce separate HELOC and CES indices in the forthcoming U.S. RMBS Credit Indices report, expected to be published on September 18, alongside the existing combined HELOC/CES index. The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar. Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees. Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.