Structured Finance Market to Grow by Nearly $1B by 2028

According to a new report from technology research and advisory company Technavio, the structured finance market will grow by an estimated $997.68 billion between 2023 and 2028, growing at a compound annual grow rate of 11.8%.

The report breaks the global structured finance market into five regions: Asia-Pacific, North America, Europe, Middle East and Africa, and South America. According to the report, the Asia-Pacific region will have the largest share of the market during the forecast period, contributing 41% to the growth of the global market during the forecast period. There has been a notable surge in infrastructure development and investment in countries in the region, according to the report, necessitating the need for structured financing solutions.

Additionally, the report notes that the large enterprises segment will contribute the largest share of the market during the forecast period. Furthermore, the report notes that structured finance creates personalized financial products that are subsequently sold as securities to investors by combining different financial responsibilities or assets, such as bonds, mortgages and loans. The large enterprises segment also represents a significant portion of the activity, with major corporations utilizing structured finance to optimize their capital structure, access funding and manage risk, according to the report.