Current Trends in Asset-Backed Finance Market

This document is a report on the asset-backed finance (ABF) market, detailing its significant growth and evolution. It outlines how the ABF market has expanded, noting that it was 67% larger in 2022 compared to 2006 and is projected to reach $7.7 trillion by 2027. The report explains the factors contributing to this growth, including the demand for non-bank finance and the need for yield among investors. It highlights the shift in the lending landscape following the global financial crisis, which allowed alternative capital providers to fill the funding gap left by traditional banks. The report discusses various strategies and products emerging in the ABF space, emphasizing the importance of expertise in managing risks associated with asset depreciation and borrower defaults. It also notes the increasing interest from institutional investors, such as pension funds, in diversifying their portfolios with ABF strategies. The document concludes by addressing the challenges and opportunities within the ABF market, particularly in the European context.