SFA Research Corner: Structured Finance: A View on Market Technicals
article by SFA
In 2023, issuers accessed the structured finance market, securing over $1.5 trillion in loans to support businesses, households, and communities. While overall issuance across the six major securitization sectors declined from 2022 levels, not all sectors witnessed a decrease in activity. The notable highlight was a 6% year-over-year increase in ABS supply, particularly, in ABS backed by prime retail auto loans and leases. The possibility of a soft-landing economy, slowing inflation and rate cuts later in the year have the potential to revive economic activity, which may enhance market liquidity and benefit securitization volumes, particularly in some sectors undergoing a downturn.