Post-pandemic paradigms in structured finance

Insights

The structured finance sector emerged as a USD1.5tn industry in 2021, equivalent to c.1.6% of global GDP, recording an impressive CAGR of 16.5% during 2016-20. During the pandemic, the industry suffered a temporary setback, with global issuance declining 6.9% y/y to USD1.0tn in 2020. Nonetheless, the market saw a strong rebound in 2021, with a 43% y/y increase in issuance volumes to the tune of USD1.5tn, and it is expected to deliver robust performance in 2022.

This performance, coupled with the ongoing LIBOR transition, increasing relevance of ESG and the growing scope of blockchain technology within the industry, has increased the scope and complexity of the role of credit analysts within the industry.

Key Takeaways

1) The structured finance industry – an overview.
2) Key focus areas.
3) Outlook by region/asset class.
4) The growing role of credit analysts – how Acuity Knowledge Partners can help.

Author

Sudham Senaratne

Associate

Sudham is an Analyst attached to the Commercial Lending division at Acuity Knowledge Partners. He is currently part of the Global Balance Sheet Distribution sector undertaking covenant monitoring, performance trigger validations and EWS monitoring for a large European Bank. Prior to joining Acuity Knowledge Partners, he has interned at two large local banks. He also holds a Bachelor’s degree in business management from the University of London.

Post-pandemic paradigms in structured finance, and the growing role of the credit analyst