Global Structured Finance Market 2016-2020

January 20, 2016
This market research report presents a comprehensive segmentation of the global structured finance market by types (ABS, CDO, and MBSand by geography (Americas, Asia, Europe, and ROW). The key vendors analyzed in this report are Bank of America Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan Chase, Morgan Stanley, and UBS.

Market overview of the structured finance market

Technavio’s research analyst predicts the global structured finance market to grow steadily at a CAGR of 16% during the forecast period. The third party due diligence services is the primary growth driver for this market. Through the Exchange Act Rule 15Ga-2 and Rule 17g-10, the issuance of the assets backed securities is expected to become transparent. It would provide the investors a detailed analysis of the securities and enhance their portfolio diversification.

Portfolio risk solutions are also expected to aid the market growth during the forecast period by providing real-time pricing and capital management of multi assets portfolio. These solutions would help finance professionals to provide information to produce cash flows and analytics at the portfolio level. This process of pricing securities will help manage individual portfolios and avoid firm-wide risks through consistency, automation, and transparency.

Product segmentation and analysis of the structured finance market

  • Assets backed securities (ABS)
  • Collateralized debt obligations (CDO)
  • Mortgage-backed securities (MBS)

The ABS segment dominated the market during 2015, with a market share of 37%. ABS products improve the efficiency of the resource allocation such that there are more liquid securities and better risk sharing. The formulation of outright purchases by the ECB would revamp the corporate loans market and also revitalize the credit market through the securitization process.

Geographical segmentation and analysis of the structured finance market

  • Americas
  • Asia
  • Europe
  • ROW

Europe accounted for 64% of the market share during 2015. In Europe, the leveraged loan CLOs would help in the resurgence of the multi-currency transaction through structural innovations. The low spread in the European Central Bank will bring in growth opportunities through a number of issuance volumes of SME CLOs, which will optimize the banks’ balance sheet through regulatory risk transfer.

Competitive landscape and key vendors

Many sponsors and corporate borrowers are taking control over potential lenders to avoid the consent rights risk. Borrowers will get a higher leverage at low cost from the facilities provided by the asset-backed lending. The credit enhancements will help in the avoidance of the interest risk mismatch. The sale of receivables to a special purpose vehicle will help in recovering back the capital amount in case of bankruptcy.

The leading vendors in the market are -

  • Bank of America Merrill Lynch
  • Barclays
  • Citigroup
  • Credit Suisse
  • Deutsche Bank
  • Goldman Sachs
  • HSBC
  • JP Morgan Chase
  • Morgan Stanley
  • UBS

The other prominent vendors in the market include Citi Group, UniCredit, and Wells Fargo.

Key questions answered in the report include

  • What will the market size and the growth rate be in 2020?
  • What are the key factors driving the global structured finance market?
  • What are the key market trends impacting the growth of the global structured finance market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the vendors in the global structured finance market?
  • Trending factors influencing the market shares of the Americas, Asia, Europe, and the ROW?
  • What are the key outcomes of the five forces analysis of the global structured finance market?

Technavio also offers customization on reports based on specific client requirement.

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