Global ABS: Eight takeaways from Barcelona

Last week marked a milestone for the structured finance industry with a record 6,003 market participants gathered in Barcelona for the 30th Global Asset-Backed Securities (ABS) conference. Investors, issuers, bankers, lawyers, rating agencies and service providers from across the globe convened to reflect on a market that has grown enormously in scale and complexity since the event first launched three decades ago. The programme reflected both that maturity and the pace of change shaping it.

Technical tailwinds

If last year's tone was one of cautious optimism, 2026 felt more subdued. The overriding mood from investors was muted and thoughtful, notably less bullish than in prior years. With spreads compressed across most of the capital structure, the relative value debate has sharpened considerably. Many participants acknowledged that current pricing leaves limited room for macro deterioration. The geopolitical backdrop continues to weigh, with the Iran-US conflict and its ripple effects being felt across risk markets. But at the same time, market technicals are providing a tailwind with cash raised and waiting to be deployed, providing a powerful floor for the market.

The issuer community told a different story. Primary markets are active, execution has been strong, and deal books have been heavily oversubscribed. With €83.5bn of issuance volume year-to-date in ABS, we are already above 2025 figures and expect a busy second half of the year.

Regulatory bounce incoming

One tailwind supporting this is the regulatory agenda. With both the UK and EU securitisation regulations in their final phase, and forthcoming changes to Solvency II and banking capital frameworks, access for insurers and other institutional investors is set to improve. This should support tighter AAA spreads and contribute to the long-term growth of the market. We have already observed a notable increase in the presence of large insurance companies at this year's conference, a clear sign that they are positioning themselves ahead of these changes.

Assets on the rise

Few topics created as much buzz as digital infrastructure. Data centre financing has emerged as one of the most interesting growth areas in structured credit, with data centre debt having nearly doubled to $182bn in 2025. Fibre networks, energy transition assets and broader digital infrastructure also stood out, with investors working through questions of cashflow characteristics, asset longevity, technology obsolescence and geographic concentration. Structured finance is increasingly seen as a natural fit for funding this next generation of infrastructure, and deal flow is set to accelerate. Given the scale of growth in this asset class, we are actively assessing the opportunity and the risks in the space.

Caution in CLOs

Collateralised loan obligation (CLO) managers were perhaps the more cautious voices at the conference. Tighter loan spreads – driven by heavy refinancing and repricing activity – combined with still-elevated liability costs have compressed arbitrage. AI and software disruption earlier in the year and the ongoing geopolitical uncertainty has added further complexity. "Dispersion" was the word on many lips, with investors increasingly selective and keeping a close eye on earlier vintage deals. From a risk-adjusted return perspective, CLOs continue to represent the most attractive asset class in structured credit in our view, and as a result volumes year-to-date have remained solid and the deal pipeline doesn’t look like slowing down.

Private credit brushes off headlines

Private credit was once again a key topic of conversation. Asset-backed finance (ABF) structures, warehouse facilities, forward-flow arrangements and net asset value-based financing is all increasingly underpinning private credit portfolio growth. The Significant Risk Transfer (SRT) market continues to attract exceptional interest, and we had perhaps the most interesting meetings around this topic at the conference. Banks are increasingly embedding SRT into their capital planning frameworks as a core strategic tool for risk management, capital efficiency or to fund balance sheet growth, and the breadth of collateral on offer, whether that is corporate, consumer or more specialised portfolios, has expanded considerably. Away from the SRT space, issuers and investors alike reflected on lessons learned after the Market Financial Solutions (MFS) fallout, with financing providers more cautious and selective on what they want to fund.

Signs of consumer stress

In residential mortgage-backed securities (RMBS) and broader consumer ABS, the picture is broadly one of resilience, with robust performance despite the backdrop of recent geopolitical stress. Performance has held up well at the aggregate level, but unsecured consumer assets are showing signs of stress in certain segments, and overall structural leverage in the market has been drifting higher. The response from originators has varied significantly, as only a subset of lenders has chosen to tighten credit standards. We continue to favour deals with genuine alignment of interest, strong amortisation profiles and well-established lenders who have both long track records of conservative origination standards, and the toolkit to support consumers appropriately.

Adaptability key with AI

The third and final day of the conference was focused on AI. Whether referencing responsible lending or credit accountability, the direction is gradual automation rather than replacement of traditional lending approaches for most. The main message was clear: adaptability will be the defining competitive advantage of the coming years. The market will be shaped by technology, and only those who are able to evolve quickly will be able to capitalise on what comes next.

ABS continues global growth

The conference has a more pronounced international feel than in years prior. Australia, Japan and China are among the largest and fastest growing securitisation markets, with a growing presence felt at investor panels and bilateral meetings. Elsewhere, participation from the Middle East was also more notable as the region becomes an increasingly significant market for structured credit. The promotion of securitisation markets globally, by way of channelling capital efficiency into the real economy, could be instrumental in powering growth from here.

We leave Barcelona with a clear-eyed view of a market that is well supported technically, and where the demand picture remains encouraging. Institutional investors, including a growing cohort of insurers positioning ahead of regulatory change, are looking to deploy meaningful capital into the asset class, and the expanding range of issuers and structures gives us more opportunity to find value across the credit spectrum. ABS continues to offer attractive relative value in our view. With spreads tight and macro uncertainty elevated, selectivity and credit rigour remain essential, but the technical tailwind is real, and we remain constructive on the market’s trajectory over the long run.