European securitisation has continued to attract a growing investor interest, underpinned by resilient performance despite an uncertain macroeconomic backdrop. Across recent market cycles, European securitised assets have delivered consistent outcomes, with strong performance observed across both consumer linked collateral \u2013 such as RMBS, consumer loans and auto ABS \u2013 and corporate related exposures, notably investment grade CLO tranches.<\/p>\n\n\n\n
Key structural advantages of the asset class include its predominantly floating-rate nature, which has proven particularly valuable amid heightened interest rate volatility and ongoing uncertainty around central bank policy paths, as well as the structure of its collateral pools, which comprise a large number of underlying assets providing inherent diversification. This broad asset base spreads risk across numerous borrowers or exposures, reducing concentration and enhancing overall stability. <\/p>\n\n\n\n
In parallel, we are seeing new market participants, both on the issuer side \u2013 where some European banks have partially returned to the market \u2013 and among investors broadening their allocations to securitisation. From a regulatory perspective, European authorities, having already intervened in 2017, increasingly recognise the importance of a deep, liquid and well functioning securitisation market for financial stability and credit transmission. Further regulatory developments are expected to support the asset class in the near future and potentially expand the universe of eligible investors. Allocation to securitised products reduces volatility and correlation to the broader asset classes, aims to capture these structural and cyclical dynamics while maintaining a strong focus on credit quality and diversification and benefits of an higher return \u2013 both in absolute and relative terms – driven by a complexity premium that compensates for structural intricacies.<\/p>\n","protected":false},"excerpt":{"rendered":"
The underrated source of returns in the credit market<\/p>\n","protected":false},"author":5,"featured_media":1445616,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ngg_post_thumbnail":0,"footnotes":""},"categories":[220],"tags":[],"class_list":["post-1445615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion-leaders-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1445615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/comments?post=1445615"}],"version-history":[{"count":1,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1445615\/revisions"}],"predecessor-version":[{"id":1445619,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1445615\/revisions\/1445619"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/media\/1445616"}],"wp:attachment":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/media?parent=1445615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/categories?post=1445615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/tags?post=1445615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}