European Structured Finance Outlook 2022


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DBRS Morningstar published its annual outlook for European structured finance. Looking ahead to 2022, as the pandemic-induced volatility continues to fade, there are a number of themes we expect the European securitisation market to face:
(1) Shift towards sustainable capital markets
-- ESG to remain in focus of investors, regulators, and other market participants
(2) Geopolitical risks
-- Brexit — a forgotten story — is still creating trade tensions for the UK with its immediate neighbours
-- Global trade tensions, migrant crises, trade wars, and supply chain issues are a few of the issues that can escalate into widespread market uncertainty
(3) Tightening of monetary policy
-- To curb inflation, transitory or persistently transitory inflation — whatever the naming convention — if central bank purchase programmes are tapered, we expect the balance of distributed versus retained issuances to tip slightly towards the former
-- In 2022, DBRS Morningstar forecasts total European securitisation issuance of EUR 200 billion to EUR 210 billion, out of which we expect EUR 110 billion to EUR 115 billion to be market-placed transactions. These forecasts are continuously dependent on the progress of measures to contain the virus and countermeasures used to keep inflation under control

Available Documents

European Structured Finance Outlook 2022

Jan 18, 2022