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Asset Backed Securities Market Size
- Report ID: GMI9550
- Published Date: May 2024
- Report Format: PDF
Asset Backed Securities Market Size
Asset Backed Securities Market size was valued at USD 1.2 trillion in 2023 and is estimated to register a CAGR of over 8% between 2024 and 2032. The rise in current-dollar Personal Consumption Expenditures (PCE) is driving the market by increasing the volume of consumer debt such as auto loans, credit card receivables, and mortgages.
According to the Bureau of Economic Analysis, in 2023, the USD 160.9 billion rise in current-dollar PCE in March was due to an USD 80.6 billion increase in spending on services and an USD 80.3 billion increase in spending on goods. Financial institutions have more loans to securitize due to higher consumer spending, enhancing the supply of asset-backed securities. This higher securitization activity meets investor demand for diversified, high-yield investment options, thereby driving the expansion and liquidity of the asset-backed securities industry.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Asset Backed Securities Market Size in 2023: | USD 1.2 Trillion |
| Forecast Period: | 2024 - 2032 |
| Forecast Period 2024 - 2032 CAGR: | 8% |
| 2032 Value Projection: | USD 2.4 Trillion |
| Historical Data for: | 2021 - 2023 |
| No. of Pages: | 260 |
| Tables, Charts & Figures: | 300 |
| Segments covered: | Underlying asset, maturity level, issuer types, structure, issuance type |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The rising global economy fosters lucrative growth opportunities for the asset backing securities market by boosting consumer and business borrowing. The increasing economic activities lead to higher volumes of loans and receivables available for securitization, enhancing the supply of asset-backed securities and attracting investors seeking diversified, high-yield investments. Additionally, global financial integration and cross-border investments further stimulate demand, driving the market growth.
Regulatory uncertainties pose a significant challenge to the asset backing securities industry growth. Changing regulations aimed at enhancing transparency, mitigating risks, and protecting investors can increase compliance costs and potentially limit the issuance of certain types of asset-backed securities. Inconsistencies or lack of clarity in regulatory frameworks across different jurisdictions can also create uncertainties for market participants operating globally. Addressing these regulatory challenges through clear guidelines, harmonization of rules, and ongoing dialogue between regulators and industry stakeholders is crucial for fostering a conducive environment for market demand.
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Asset Backed Securities Market Scope
