S&P Global Ratings has published its latest European Structured Finance Outlook, forecasting that European securitisation issuance could grow by more than 5 per cent to EUR120 billion in 2022 after a bumper year in 2021.
The growth is set to be driven by a return to normal spending behaviour after the pandemic, as well as greater lending volumes across CLO and RMBS in particular.
The scaling back of central banks’ cheap funding schemes should support more bank-originated supply in 2022. Demand will also be supported by ongoing quantitative easing, while inflationary pressures and interest rate volatility should bolster private-sector demand for European securitised credit. In the search for yield and with the advantage of floating rates, a broader range of fixed-income investors are more likely to turn to structured finance.
