Dechert Publishes 2025 Market Insights in Lexology Securitisation Guide

For its second year, Dechert has published a structured finance and securitization guide for 2025 with Lexology Panoramic. This report offers a global overview of the structured finance and securitization market in 2024, highlighting significant growth in asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), and collateralised loan obligations (CLOs) despite economic headwinds.

The "USA" and "UK" chapters, written by Dechert lawyers, discusses specific legislation and regulatory changes impacting each jurisdiction are detailed, along with their implications for market participants.

Finally, the report looks ahead to 2025, anticipating continued market growth and further regulatory developments. Key factors contributing to this positive trend include a resurgence in CMBS activity, the entry of new market players, and a decrease in inflation rates.

Global Overview Key Highlights 

• 2024 Growth: Significant growth in ABS market driven by CMBS activity, new participants, and lower inflation; strong performance in autos, consumer, solar, renewable energy, RMBS, and CMBS sectors.
• Investor Interest: Stable collateral performance attracted new and returning investors; CMBS issuance up 175% from Q3 2023; record year for CLOs with over $200 billion in issuance.
• 2025 Outlook: Continued robust growth expected in ABS market; potential CMBS issuance exceeding $110 billion; bullish outlook for CLO market with growth in new-issue CLOs.
• Regulatory Changes: Significant regulatory changes in US and EU; potential pushback on 2024 US regulations; focus on Basel III re-proposal, Corporate Transparency Act, SEC’s climate disclosure rules, and ESG provisions.
• Corporate Transparency Act: Requires entities to disclose beneficial owners, with a 30-day compliance period for new entities from 1 January 2025.