Pent-up deal activity, prospects for interest rate cuts, and a quickly changing macroeconomic and geopolitical climate given concerns over tariffs are creating new conditions for structured finance. These forces have already begun to affect market sentiment and reshape deal structures in 2025. The market outlook is positive across almost every asset class.
Our conversations with clients and peers at SFVegas 2025 echoed this sense of industry change. The industry is adjusting to changing conditions in seven core ways that are likely to set the tone for the year ahead. 1Disclosure number, please reference additional details in the Disclosures section at the bottom of this page.
1. Expanding securitized asset classes
The securitization market continues to evolve beyond traditional loan-based assets. Discussions point to increasing activity in royalties, franchise fees, infrastructure, and other esoteric asset classes. Hybrid deal structures—blending traditional and emerging assets—are also becoming more common, requiring adaptable frameworks for trustee involvement and reporting. While these developments create new issuer and investor opportunities, they also bring complexity in valuation, servicing, and risk management. Market participants are evaluating how to adapt to innovations in asset types and deal structures while maintaining transparency and investor confidence.
2. The systemic influence of private credit
Private credit’s rapid expansion continues to reshape structured finance, particularly in asset-backed securities (ABS), mortgage-backed securities (MBS), and collateralized loan obligations (CLOs). The increased participation of private lenders has increased the supply of assets and driven deal volume, but it has also heightened operational pressures around scalability, data flow, and resource allocation. At the same time, we see shorter reporting cycles. Trustees interact with a growing number of counterparties, each with unique data and servicing demands. With more diverse counterparties, data fragmentation is increasing, requiring stronger standardization and automation. This growing complexity is pushing market participants to refine operations. They want to enhance efficiency in data ingestion while balancing the need for accuracy, transparency, and risk mitigation.
3. The evolving role of the trustee
With counterparty risks, liquidity concerns, and potential refinancings and resets on the rise, the trustee’s role has become more critical than ever. The possibility for defaults and workouts remains even as credit conditions improve. Such events demand structured response plans, with trustees expected to navigate distressed deals in the face of borrower, lender, and investor concerns. Many conversations at SFVegas touched on the need for trustees across the spectrum to manage deal continuity under stress, ensuring fidelity to transaction documents and compliance amid evolving market conditions. In particular, discussions focused on how trustees handle scenarios like servicer failures, distress, and amended or restated loan terms. These scenarios could become more frequent, requiring trustee expertise in complex transactions.
4. CLO market sentiment and data challenges
CLO issuance has remained robust. The increased deal flow risks creating greater operational complexity. Leading providers have adapted their teams and processes to service that deal volume. At the same time, trustees need to deliver to compressed reporting timelines and a growing volume of data that must be processed, validated, and distributed efficiently. In many cases, the number of data fields trustees manage has expanded significantly, raising questions about modernization and automation in data ingestion. Efforts to streamline these processes are critical, as inefficiencies can create bottlenecks that impact deal execution and investor reporting.
5. The technology landscape: Incremental change, big-picture questions
Market participants are weighing the practical challenges of integrating digitization into structured finance workflows, including using digital versions of transaction documents and signatures. The conversation continues to center on whether digital innovations will accelerate efficiency gains or introduce new risks that need to be carefully managed. Stakeholders prioritize efficiency and transparency. But tech adoption remains uneven due to operational adjustments, regulatory uncertainties, and the need for interoperability between legacy and digital systems. While these digitization efforts are making slow progress, broader questions remain about AI, automation, and tokenization.
6. Navigating regulatory complexity
Regulatory developments remain a central concern for structured finance professionals. Discussions are focused on the impact of EU securitization regulations, the continuance of the Consumer Financial Protection Board (CFPB) in the U.S., the transition to the capital requirements of the final phases of Basel III (sometimes called Basel IV), and state-level legal changes, such as Maryland’s recent requirement that all assignees of residential mortgage loans, including passive trusts involved in securitizations, must obtain state licenses. With regulatory uncertainty shaping deal structures and investor sentiment, firms are working to stay ahead of compliance requirements while ensuring continued market stability.
7. Shifting career opportunities in structured finance
As digital tools, regulatory shifts, and new asset classes reshape market demands, the structured finance talent landscape is evolving, too. Firms in every area of this industry need professionals who can bridge finance, technology, and compliance, particularly as data management and reporting requirements grow more complex. In addition, the expansion of private credit and heightened cybersecurity concerns is also driving demand for specialists in risk assessment and operational efficiency. Competition for talent is fierce. These shifts are creating new career paths in corporate trust and beyond, attracting both seasoned professionals and those with digital finance and analytics expertise, redefining how talent contributes to the industry’s future.
Connect with us
Our team returned from the conference feeling inspired and invigorated by the innovative spirit of the securitization community. If we didn’t have the opportunity to connect during the event, we’d be delighted to schedule a call and explore how we can work together. 1Disclosure number, please reference additional details in the Disclosures section at the bottom of this page.
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This article is intended to provide general information only and is not intended to provide specific investment, legal, tax, or accounting advice for any individual. Before acting on any information included in this article you should consult with your professional adviser or attorney. Facts and views presented in this report have not been reviewed by, and may not reflect information known to, or the opinions of professionals in other business areas of Wilmington Trust or M&T Bank. M&T Bank and Wilmington Trust have established information barriers between their various business groups.
Not all services are available through every domestic and international affiliate or in all jurisdictions. Services are available only to institutional clients, (i.e. Eligible Counterparties or Professional Clients as defined by applicable regulations), and not for Retail clients.
This article is intended to provide general information only and is not intended to provide specific investment, legal, tax, or accounting advice for any individual. Before acting on any information included in this article you should consult with your professional adviser or attorney. Facts and views presented in this report have not been reviewed by, and may not reflect information known to, or the opinions of professionals in other business areas of Wilmington Trust or M&T Bank. M&T Bank and Wilmington Trust have established information barriers between their various business groups.
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