Dechert Publishes 2026 Market Insights in Lexology Securitisation Guide
February 11, 2026
For its third year, Dechert has published a structured finance and securitization guide for 2026 with Lexology Panoramic. This report offers a global overview of the structured finance and securitization market in 2025, 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 2026, 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
- 2025 Growth: ABS market extended 2024 strength with issuance and performance up year-over-year on stabilizing rates and lower volatility; growth reinforced in autos, credit cards, equipment and esoterics (solar, data centers), with CDO/CLO-style structures nearly one-third of US ABS issuance.
- Investor Interest: Broad, steady demand from banks, insurers, credit unions and private credit. Drawn by short duration, strong credit enhancement and spread pickup. CMBS mix led by SASB (> two-thirds) and five‑year conduits; industrial and retail steadier.
- 2026 Outlook: ABS market appears poised to maintain its momentum; CMBS ~US$183bn forecast (+18%) on large maturity walls and bank pullback; SASB still >50%. CLO new‑issue, refi and resets supported by loan supply and tight AAA spreads; floating rates temper inflation risk.
- Regulatory Changes: Basel III “endgame” under revision; capital impact uncertain. SEC climate rule stayed and in limbo. Loper Bright increases court scrutiny of agency rules. Rule 192 effective 9 Jun 2025, with May 2025 no‑action relief allowing information barriers.
- Corporate Transparency Act: Effective 1 Jan 2025, but FinCEN’s Mar 2025 interim rule exempts domestic entities and US persons from BOI reporting, largely muting US impact.
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