Market Foresight
Key Structured Finance themes in 5 year's time?
I think some of the important themes we're seeing now are only just beginning to play out, and likely to still be important in five years' time. For example, changes to bank capital driving their specific uses of securitisation and the appetite of private capital to invest in asset-backed finance are both important trends now and there is no sign of them becoming less relevant any time soon.
The biggest current opportunity for our industry?
Our biggest opportunities come from adapting to change. For example, using securitisation as a means to provide finance for the green and digital transitions will become more urgent in the medium term. Working out the tensions between sustainability and, e.g. the staggering resource consumption linked to increased use of AI, will be important. Ultimately, there are significant opportunities in finding sustainable digital solutions to facilitate the securitisation funding of things people will always need: housing, transportation, and meaningful employment opportunities.
The biggest challenge our industry currently faces?
Our biggest challenges are, in many ways, not specific to our industry. General economic headwinds coming from increased barriers to international trade, from war, from an ageing western population and from the associated sluggish economic growth will inevitably affect both the volume and quality of assets to be securitised. Finding new sources of funding and adapting securitisation technology to new assets will be key in addressing these challenges.
Get Personal
The best advice that you've ever received?
The more a situation raises your emotions, the more important it is to think about it calmly and dispassionately. Sleep on it if you can, or at least get the perspective of someone you trust if it can't wait.
