Tech Shifts and Obsolescence Risks in Structured Finance

Richard Hunter and Duncan Innes-Ker discuss how the Middle East crisis is affecting sovereign ratings and the macro-outlook. Impacts are contained so far, and much geopolitical risk is already built into ratings and headroom.

From unsupported EV software to AI‑driven changes in office use and logistics, tech is reshaping collateral performance. Justin Patrie, Head of Fitch Ratings Credit Commentary and Research, and Suzanne Albers, Senior Director in Structured Finance, look at pressure points such as outdated EV systems, shifts in office demand linked to AI adoption, and the widening gap between legacy and modern logistics sites. Taken together, these trends are influencing risk across auto ABS, CMBS, and RMBS and accelerating how these sectors respond to the faster pace of technological change.Related Resources:Accelerating Technology May Increase Obsolescence Risk Within ABS, MBSStable Arrears Protect European Auto ABS Against Near-Term RiskU.S. CLO Note Ratings Resilient to Severe Software Sector Stress

Thomas Rookmaaker and Harry Hu evaluate recent youth‑led protests in several Asian countries, driven by concerns over governance, living costs and unemployment, and their implications for sovereign credit profiles and political transitions.Risk of Political Flare-Ups to Linger in 2026 for Some APAC SovereignsAsia ‘BBB’ Sovereigns Show Strong Growth; Fiscal Risks DivergeDurable Coalition Key to Thailand's Fiscal Outlook After Elections

Justin Patrie and Sarah Repucci unpack Fitch’s Global Credit Outlook, highlighting resilient credit conditions, pressures in China and Canada, and key risks, including strain on lower‑income U.S. consumers, tariff volatility and geopolitical shocks.Global Credit Resilience to Face Major Tests in 2026Global Private Credit’s Burgeoning Scale, Complexity to Continue in 2026Geopolitical Tensions Raise Emerging Market Credit Risks in 2026Benign U.S. Credit Backdrop Faces AI, Consumer and Trade RisksGeopolitical Tensions Cloud Developed Europe’s Growth, Investment

Todd Martinez and Josh Grundleger discuss the US ouster of Nicolas Maduro, the revived Monroe Doctrine, and key risks for Latin America, including oil investment, debt restructuring, regional market reactions, and impacts on migration and tourism.

Brian Coulton and Ed Parker discuss Fitch’s Global Economic Outlook, reviewing where the world economy stands at the close of 2025 and key trends for 2026, from AI-driven investment and resilient U.S. equities to China’s sharp investment slowdown.

Lyuba Petrova, Lyle Margolis and Justin Patrie examine bubble risks as equities surge, credit spreads tighten, private credit faces hidden vulnerabilities and AI investment accelerates, though valuations suggest buyers aren’t overpaying.

Shelly Shetty and Todd Martinez analyze Argentina’s mid-term elections, what Milei’s stronger legislative backing means for reforms, and the lingering risks around reserves and external liquidity.

James Longsdon, Head of Global Sovereigns and Supranationals, and Federico Barriga Salazar, Head of Western European Sovereign Ratings, discuss Western Europe’s fiscal divergence, recent upgrades and downgrades, and Fitch’s deficit outlook.

Justin Patrie, Head of Credit Commentary & Research, and Sarah Repucci, Senior Director, Credit Commentary & Research, discuss emerging challenges for the AI-fueled US data center boom, covering investment, rising costs, impact on utilities and more.