Russia ABS Market Outlook

the russia abs market outlook for 2018-2032 has been characterised by significant momentum and activity throughout the nation. last year saw record levels of issuance and total issuance of securitized products in russia valued over us$10 billion. this was driven by several new regulations governing the securitization process, such as the inclusion clause in the basel iii risk-based capital rules, as well as improved investor sentiment for russian assets. the economic outlook in russia so far has been positive, with a projected real gdp growth of 2.7% in 2018, and staying firm at 2.5%-3.0% until 2023. this means that the demand for debt financing and credit from consumers, businesses, and banks will remain strong, driving further issuance of abs. looking at the market segmentation, consumer abs will remain an important part of the market until 2032, with mortgage-backed securities expected to be the largest contributor. russian auto loan and leasing abs are also showing increasing activity, with large state-owned banks andleasing companies leading the securitization market. furthermore, demand for securitized products from russia’s automotive jv is also expected to grow. after the liberalisation of the mortgage market in 2018, the commercial real estate market is becoming increasingly active in securitization. companies are now able to access abs financing for individual projects, enabling them to finance investments and major real estate projects. on the other hand, infrastructure-related assets are likely to drive the largest portion of the market between 2018 and 2032, with asset-backed securities (abs) of infrastructure asset classes such as transport and project finance likely to benefit. in general, the abs market outlook for russia in the coming years is positive since the government is pushing the new regulations that will make securitization more accessible to all. overall, the abs market outlook in russia looks positive as the country’s macroeconomic outlook remains strong, regulation has been improved, and investor confidence has been growing. with the vast array of assets eligible for securitization and the improved issuers’ appetite, we can expect to see an increased level of activity in abs and other forms of securitized products throughout the 2018-2032 period.