#securitisation

HSBC profit underwhelms on unexpected $400 million private credit loss

HSBC reported an unexpected $400 million loss linked to a fraud case ‌in Britain on Tuesday, causing it to slightly undershoot first-quarter profit estimates and raising questions about bank lending to the $3.5 trillion private credit industry.

Structured Finance in 2025: Innovation, ESG & Opportunity

In today’s dynamic capital markets, structured finance is a key enabler of liquidity and efficient capital deployment. At its core lies securitisation — the process of bundling assets like mortgages, loans, or receivables into tradable securities. This mechanism connects borrowers with global investors and helps originators manage risk and unlock funding.

Heading into 2025, the structured finance landscape is rapidly evolving, shaped by digital innovation, regulatory reforms, and ESG integration. Global issuance rebounded in 2024, with U.S. CMBS volumes up 175% and CLOs poised to exceed $200 billion. European and Asian markets followed suit, driven by demand for yield and refinancing momentum.

Key Trends:

Green & ESG Securitisation: From solar loans to energy-efficient mortgages, sustainable finance is driving new structured products.

New Asset Classes: IP royalties, equipment leases, and even art are being securitised.

Digital Transformation: Tokenised bonds, AI-powered analytics, and blockchain are improving transparency, speed, and access.

Risk remains central. Post-crisis reforms have enhanced safeguards through tranching, credit enhancements, and mandatory risk retention. ESG factors and climate risk are increasingly embedded in structuring and disclosure.

Why It Matters for Dealmakers

As regulatory frameworks like Basel IV and CRR3 reshape capital requirements, understanding structured finance is essential. Opportunities abound in ESG-linked ABS, tokenisation, and rising interest from non-bank investors.

For insights, connections, and actionable strategies, dealmakers turn to Global Banking & Markets (GBM) events. Whether navigating M&A, private equity, or structured bonds and loans, GBM provides the platform to stay ahead.

Join GBM — and accelerate your next deal.