Activity in the securitisation market, including direct assignments (DAs) and pass-through certificates (PTCs), picked up in fiscal 2024. The volume of issuances increased to Rs 1.9 lakh crore, regaining the peaks seen in fiscals 2019 and 2020.
Growth was led by favourable market dynamics, marked by increase in the number of originators and investors, a bouquet of asset classes and innovative structures.
The growth momentum should sustain this fiscal, with volumes reaching a new peak as non-banking financial companies (NBFCs) look to diversify their funding avenues to meet the increasing retail credit demand amid recent regulatory tailwinds.
The enhanced vibrancy of the market is also reflected in the rising volume of securitisation originated by banks. With deposit growth continuing to lag credit growth, banks are exploring the securitisation route.
On the demand side, banks continue to dominate, accounting for 90% of securitisation investments as they look to expand exposure to retail assets with robust performance track record.
That said, the market is also seeing increasing participation by mutual funds, insurance companies and alternative investment funds. Innovations such as replenishing structures and transactions with trigger-based turbo amortisation, for instance, are highly popular among stakeholders across asset classes.
In sum, wider stakeholder participation, resilient performance of securitisation transactions through periods of stress and innovative structures indicate that securitisation will remain an efficient source of funds for NBFCs and banks.
In this milieu, Crisil Ratings is hosting a webinar on the securitisation market.
The presentation will cover:
Securitisation market trends: Volume growth, asset class mix, DA vs PTC mix
Growth drivers: Supply- and demand-side imperatives
Performance trends and risk-adjusted returns
This will be followed by a panel discussion and Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of Crisil. Any use of the same without written permission of Crisil is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
