KBRA Releases Research – Recurring Revenue Loan Metrics Dashboard: Q3 2024

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

In this report, an update to our Q2 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 Q2 analysis used collateral tapes dated through June 2024, and for this update we utilized reports dated through September 2024 (for more on scope and metrics definitions, see Appendix 1 in the report).

For the first time in nearly three years, annualized recurring revenue is down quarter over-quarter (QoQ), but remains well above the historical average. Other key metrics, including cash and liquidity, have also fallen but remain in line with or higher than historical averages. Despite these trends, KBRA has observed more underlying recurring revenue borrowers converting from recurring revenue covenants to cash- or EBITDA-based covenants, which we view as an important proof of concept for the securitizations.

Click here to view the report.

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