North America ABS Market Outlook

the north american abs market is expected to remain strong in the near term according to the latest industry outlooks. growth is being driven by factors such as the sustained favorable regulatory environment, the increased availability of non-traditional credit sources, and the increased popularity of abs structures. abs structures, such as asset-backed securities (abs), mortgage-backed securities (mbs), collateralized debt obligations (cdos) and real estate asset-backed securities (reabs), have experienced a strong uptake of investors in recent years as they are seen as offering more security and better returns than other debt instruments. the shift towards abs has been further encouraged by the favorable regulatory environment. the dodd-frank wall street reform and consumer protection act has eased restrictions on the securitization market, promoting a more stable, transparent and efficient abs market. regulatory changes that encourage greater capital market efficiencies and increased risk mitigation are expected to benefit the north american abs market. demand for abs is also being driven by increased availability of non-traditional credit sources such as peer-to-peer lenders and crowdfunded lenders. these non-traditional sources of capital offer investors more opportunity for greater returns with lower capital commitment. the increased popularity of abs structures across the north american market is also leading to more competition among issuers, with issuers striving to introduce new products with attractive features to better appeal to potential buyers. overall, the north american abs market is expected to remain strong and well-positioned for growth over the next several years. improved regulatory support and a more dynamic product offering is expected to drive increased demand for securitized assets. furthermore, the increasing availability of non-traditional sources of credit is expected to further contribute to sustained growth and stability in the market.