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
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, market forecast 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?
Table of Content
PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
- Research methodology
- Economic indicators
PART 04: Introduction
PART 05: Market landscape
- Market overview
- Market size and forecast
- Five forces analysis
PART 06: Product segmentation
- Market overview
- Global asset-backed securities market
- Global collateralized debt obligations market
- Global mortgage-backed securities market
PART 07: Geographical segmentation
PART 08: Market drivers
- Third-party due diligence services
- Geographical expansion
- Developments in student loan finance
PART 09: Impact of drivers
PART 10: Market challenges
- Requirement of liquidity coverage ratio increases the cost of securitization for banks
- Problems in the rating agency
- Managing new assets and new issuers efficiently
- Risk management issues
PART 11: Impact of drivers and challenges
PART 12: Market trends
- Structuring CLOs with Irish issuers
- Increased issuance of structured finance products
- Portfolio risk solutions
PART 13: Vendor landscape
- Competitive landscape
- Other prominent vendors
PART 14: Key vendor analysis
- Bank of America Merrill Lynch
- Barclays Bank
- Citigroup (Citibank)
- Credit Suisse
- Deutsche Bank
- Goldman Sachs
- HSBC Global Asset Management
- JP Morgan Chase
- Morgan Stanley
- UBS
- Top-vendor offerings
PART 15: Appendix
List of abbreviations
PART 16: Explore Technavio
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
- Manufacturers and suppliers
- Channel partners
- Industry experts
- Strategic decision makers
Secondary sources
- Industry journals and periodicals
- Government data
- Financial reports of key industry players
- Historical data
- Press releases
DATA ANALYSIS
Data Synthesis
- Collation of data
- Estimation of key figures
- Analysis of derived insights
Data Validation
- Triangulation with data models
- Reference against proprietary databases
- Corroboration with industry experts
REPORT WRITING
Qualitative
- Market drivers
- Market challenges
- Market trends
- Five forces analysis
Quantitative
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape