Asset Backed Securities

Global Asset Backed Securities Market to Reach US$1.8 Trillion by 2030

The global market for Asset Backed Securities estimated at US$1.2 Trillion in the year 2024, is expected to reach US$1.8 Trillion by 2030, growing at a CAGR of 6.7% over the analysis period 2024-2030. Residential Mortgage-Backed Securities, one of the segments analyzed in the report, is expected to record a 8.4% CAGR and reach US$395.1 Billion by the end of the analysis period. Growth in the Commercial Mortgage-Backed Securities segment is estimated at 7.2% CAGR over the analysis period.

The U.S. Market is Estimated at US$339.1 Billion While China is Forecast to Grow at 10.7% CAGR

The Asset Backed Securities market in the U.S. is estimated at US$339.1 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$384.5 Billion by the year 2030 trailing a CAGR of 10.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.2% and 6.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.4% CAGR.

Global Asset-Backed Securities Market - Key Trends & Drivers Summarized

How Are Asset-Backed Securities Reshaping Investment Portfolios?
Asset-backed securities (ABS), financial instruments backed by pools of assets such as loans, leases, or receivables, are revolutionizing the investment landscape. These securities provide investors with diversified opportunities while offering issuers a means to raise capital efficiently. ABS instruments appeal to a broad spectrum of investors by offering stable cash flows and credit enhancements that mitigate risks. In recent years, the introduction of innovative asset categories, such as renewable energy receivables and fintech-originated loans, has expanded the market`s scope. This evolution reflects the growing demand for customized and resilient investment options in uncertain economic environments.

What Trends Are Driving the Growth of the ABS Market?
The ABS market is experiencing robust growth driven by several critical trends. The rise of fintech platforms and digital lending has led to an increase in securitization of non-traditional assets, such as peer-to-peer loans. Regulatory frameworks, particularly in developed economies, have been updated to ensure transparency and reduce risks associated with these instruments, boosting investor confidence. The adoption of ESG (Environmental, Social, and Governance) principles has also given rise to green ABS, aligning with sustainability goals. Additionally, technological advancements in data analytics are enabling better risk assessment and pricing of ABS, making the market more efficient.

Why Are Asset-Backed Securities Attractive to Investors?
ABS offer unique advantages that attract both institutional and retail investors. By diversifying underlying asset pools, these securities reduce exposure to individual risks, ensuring more stable returns. The flexibility in structuring ABS to cater to varying risk appetites and yield expectations further enhances their appeal. Additionally, credit enhancements, such as over-collateralization and reserve accounts, offer added layers of protection to investors. The ability to securitize unconventional assets has created a growing array of investment options, reinforcing the significance of ABS in modern portfolios.

What Drives the Growth in the Asset-Backed Securities Market?
The growth in the asset-backed securities market is driven by increasing demand for diversified investment options, advancements in fintech, and expanding securitization of non-traditional asset classes. The growth of the digital economy has created new categories of receivables ripe for securitization, while improved regulatory oversight has fostered investor confidence. Rising global interest in ESG investments has further bolstered the market, with issuers creating green and socially responsible ABS. These factors, combined with advancements in risk assessment technologies, underscore the sustained growth trajectory of the ABS market.

SCOPE OF STUDY:

The report analyzes the Asset Backed Securities market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Underlying Asset (Residential Mortgage-Backed Securities, Commercial Mortgage-Backed Securities, Auto Loan/Lease ABS, Credit Card ABS, Student Loan ABS, Equipment Lease ABS, Other Underlying Assets); Issuer Type (Financial Institutions Issuer, Captive Finance Companies Issuer, Government-Sponsored Enterprises Issuer, Specialty Finance Companies Issuer, Other Issuer Types)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 43 Featured) -

• Citigroup, Inc.
• Deutsche Bank AG
• Goldman Sachs & Co. LLC
• Guggenheim Investments
• Janus Henderson Investors
• JPMorgan Chase & Co
• M and G plc
• Morgan Stanley
• Societe Generale
• TwentyFour Asset Management LLP
• UBS AG
• Wells Fargo

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