Clear Insights 2019 Structured Credit Snapshot & Predictions
WE DON’T HAVE A CRYSTAL BALL BUT WE DO SEE SOME KEY TRENDS SHAPING UP FOR 2019
As the sun prepares to set on 2018, ClearStructure Financial Technology looks to 2019, and we see several recurring themes in Structured Credit from clients, research reports and market indicators; all pointing to the same thing: the securitization market is booming, and the global markets are taking notice. The key themes we believe will drive opportunity and markets in 2019 are:
- 1. With 2018 going down as a banner year for the securitization market we see a return of Trust Preferred CDOs, new global participants, and growing interest in innovative types of financing structures.
2. We may see weaker collateral and looser documents as a differentiator for managers and force investors to be more diligent.
3. We expect the public scrutiny on securitization to continue.
4. We believe that the expansion and growth cycle is slowing and the risk defaults may creep in incrementally in 2019.
Overall we expect 2019 will see a continued market demand for greater insight into investment composition and internal operations. Did you know that Sentry not only delivers this transparency, but supports all types of CLO assets, automates repetitive processes and data entry, simplifies the Manager’s work, and unites the front, middle and back offices with one interconnected system.
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