High yield structured credit: Ripe conditions within the European market

Today’s structured credit market is characterised by a diverse range of asset types and instruments. These can be accessed through both public and private markets. The array of options include asset-backed securities (ABS), collateralised loan obligations as well as Significant Risk Transfer (SRT) transactions and other forms of private asset-backed finance such as specialty finance – two key investment areas emerging from the wake of the Global Financial Crisis (GFC). Several long-term structural themes have propelled these five verticals’ forwards in recent years. These themes look set to shape their development and evolution ahead as the asset class enters its next phase of growth.