The article examines causal relationships between sovereign credit default swaps (CDS) prices for the BRICS and most important EU economies (Germany, France, the UK, Italy, Spain) during the European debt crisis. The cross-correlation function (CCF) approach used in the research distinguishes between causality-in-mean and causality-in-variance. In both causality dimensions, the BRICS CDS prices tend to Granger cause those of the EU counterparts with the exception of Germany. Italy and Spain exhibit the highest dependence on the BRICS, whereas only India has a negative balance of outgoing and incoming causal linkages among the BRICS. Thus, the paper underscores the signs of decoupling effects in the sovereign CDS market and also supports the view that the European debt crisis has so far had a limited non-EU impact in this market.

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Structured Finance Market Size 2025-2029

The structured finance market size is valued to increase by USD 1128.5 billion, at a CAGR of 11.9% from 2024 to 2029. Increasing demand for alternative investment products will drive the structured finance market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 42% growth during the forecast period.
By End-user - Large enterprises segment was valued at USD 771.40 billion in 2023
By Type - CDO segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 163.86 billion
Market Future Opportunities: USD 1128.50 billion
CAGR from 2024 to 2029 : 11.9%

Market Summary

The market is witnessing significant growth due to the increasing demand for alternative investment products. This trend is driven by investors' quest for yield and risk diversification, particularly in an era of low-interest rates. One notable development in this space is the increasing popularity of Environmental, Social, and Governance (ESG) linked structured finance products. These instruments offer investors the opportunity to align their investments with their values while also potentially achieving attractive returns. Another factor fueling market growth is the increasing complexity of structured finance products. As financial institutions seek to innovate and differentiate themselves, they are developing increasingly sophisticated structures to meet the evolving needs of their clients.
For instance, a leading global manufacturing company recently optimized its supply chain financing by implementing a structured finance solution. This enabled the company to improve its working capital position and enhance operational efficiency, resulting in a significant reduction in days sales outstanding (DSO) by 15%. Despite these opportunities, the market faces challenges, including regulatory compliance and counterparty risk. As financial regulations continue to evolve, institutions must ensure that their structured products comply with the latest rules and regulations. Additionally, managing counterparty risk remains a critical concern, particularly in the wake of the 2008 financial crisis. To mitigate these risks, institutions are increasingly leveraging technology and Data Analytics to assess and monitor counterparty risk in real-time.
In conclusion, the market is experiencing robust growth, driven by increasing demand for alternative investment products and the development of innovative structures. While challenges persist, institutions that can effectively navigate the complex regulatory landscape and manage counterparty risk will be well-positioned to capitalize on the opportunities in this dynamic market.

What will be the Size of the Structured Finance Market during the forecast period?

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How is the Structured Finance Market Segmented ?

The structured finance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Large enterprises
  SMEs


Type

  CDO
  Asset-backed securities
  Mortgage-backed securities


Product

  Loans
  Bonds
  Mortgages
  Credit card and trade receivables
  Others


Application Type

  Real Estate
  Automotive
  Consumer Credit
  Infrastructure


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By End-user Insights

The large enterprises segment is estimated to witness significant growth during the forecast period.

In the dynamic world of structured finance, major enterprises play a pivotal role, engaging in intricate financing agreements to manage their capital and mitigate risk. Structured finance transactions involve the combination of various financial instruments, including bonds, mortgages, and loans, which are then securitized and sold to investors. This process enables businesses to raise capital by transferring related risks, with large businesses often serving as the original creators of the underlying assets. The market is characterized by ongoing activities and evolving patterns. For instance, portfolio risk management strategies involve the use of credit derivatives, such as credit default swaps and interest rate swaps, for hedging purposes.

Leveraged finance and Private Equity financing employ synthetic securitization techniques, like structured notes and synthetic collateralized debt obligations, to optimize capital structures. Credit rating agencies assess credit risk, while investment grade ratings provide benchmarks for investors. Liquidity management and due diligence processes

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Fixed Income Assets Management Market Size 2025-2029

The fixed income assets management market size is valued to increase USD 9.16 tr, at a CAGR of 6.3% from 2024 to 2029. Increasing investment in fixed income assets will drive the fixed income assets management market.

Major Market Trends & Insights

North America dominated the market and accounted for a 35% growth during the forecast period.
By Type - Core segment was valued at USD 13.18 tr in 2023
By End-user - Enterprises segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 55.33 tr
Market Future Opportunities: USD 9156.40 tr
CAGR : 6.3%
North America: Largest market in 2023

Market Summary

The market encompasses the management and investment in various types of debt securities, including bonds and treasuries. Core technologies and applications, such as portfolio optimization algorithms and risk management tools, play a crucial role in this market's continuous evolution. One significant trend is the increasing adoption of bond exchange-traded funds (ETFs), which accounted for over 20% of global fixed income assets under management in 2021.
However, the market faces challenges, including transaction risks and regulatory changes. For instance, the European Securities and Markets Authority's (ESMA) updated guidelines on MiFID II reporting requirements have impacted market participants. Despite these challenges, opportunities persist, including the growing demand for active management strategies and the increasing popularity of alternative investment-grade bonds.

What will be the Size of the Fixed Income Assets Management Market during the forecast period?

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How is the Fixed Income Assets Management Market Segmented and what are the key trends of market segmentation?

The fixed income assets management industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD tr' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Core
  Alternative


End-user

  Enterprises
  Individuals


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The core segment is estimated to witness significant growth during the forecast period.

Fixed Income Asset Management (FIAM) is a strategic investment approach that focuses on managing a diversified mix of US dollar-denominated fixed-income securities. This strategy encompasses various types of securities, including investment-grade bonds, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), asset-backed securities (ABS), US government bonds, corporate debt, and other securitized assets. FIAM strategies employ rigorous research and risk management techniques to deliver consistent, solid returns, balancing both capital growth and income objectives. Portfolio managers meticulously blend securities across issuers, maturities, and jurisdictions to cater to the varying requirements of investors. Quantitative bond strategies, such as yield curve modeling and duration and convexity analysis, play a crucial role in FIAM.

These strategies help in assessing the risk-reward trade-off and optimizing the portfolio's sensitivity to interest rate changes. Interest rate swaps and other interest rate derivatives are essential tools in managing FIAM. They enable portfolio managers to hedge against interest rate risk and adjust the portfolio's duration to maintain an optimal risk profile. Performance attribution models and option-adjusted spread analysis are essential for evaluating the effectiveness of FIAM strategies. These models help in understanding the contribution of various factors to the portfolio's overall performance. Liquidity risk management is another critical aspect of FIAM. Portfolio managers employ various techniques, such as securitization and debt portfolio optimization, to manage liquidity risk and ensure that the portfolio remains accessible to investors.

Global macroeconomic factors, such as inflation, economic growth, and interest rates, significantly impact the FIAM market. Inflation-linked securities and credit default swaps are popular instruments used to hedge against inflation risk and credit risk, respectively. The FIAM market is experiencing steady growth, with an increasing number of investors recognizing the benefits of this investment strategy. According to recent studies, the market is projected to expand by approximately 12% in the coming year. Additionally, there has been a significant increase in the adoption of quantitative bond strategies, with over 40% of portfolio managers re

Graph and download economic data for ICE BofA Euro High Yield Index Option-Adjusted Spread (BAMLHE00EHYIOAS) from 1997-12-31 to 2025-09-29 about option-adjusted spread, Euro Area, Europe, yield, interest rate, interest, rate, and indexes.