Securitisation 2025

INTRODUCTION Contributed by: Tamara Box and Sarah Caldwell, Reed Smith

Guide Introduction As economic pressures and investor expecta - tions reshape the securitisation landscape, the 2025 Chambers Securitisation Guide equips practitioners with essential insights into today’s transactions, including the structuring process, jurisdictional nuances and regulatory frame - works. The Guide offers practical overviews of secu - ritisation transactions across many jurisdic - tions. Each jurisdiction section details com - monly securitised assets, transaction structures and popular regions for special purpose enti - ties. Key documentation requirements, includ - ing asset transfers, covenants, warranties and credit enhancements, are also addressed. The Guide is intended to be accessible and practical, walking the reader through the cycle of a typical securitisation transaction, with a focus on all of the “need to know” transaction features. The Guide includes updated guidance on struc - tural features driven by regulatory developments affecting credit risk retention, transparency, investor disclosure standards and reporting requirements, together with tax and accounting rules that affect asset transfers, profits and the approach on legal opinions. Prepared by secu - ritisation experts, the Guide serves as a useful resource, offering practical support for securiti - sation transactions across different jurisdictions. We welcome comments and feedback for future editions as the securitisation landscape contin - ues to evolve.

tory and structural factors. Stabilising interest rates, cautious investor optimism and regulatory developments aimed at supporting ESG integra - tion and transparency are key trends expected to influence market activity. However, the diver - gent regulatory approaches across the US, UK and EU present ongoing challenges for cross- border securitisations, particularly in terms of compliance and investor protections. As we head into 2025, elections in the US, UK and India are poised to influence economic poli - cy and potentially shift regulatory priorities in the securitisation markets. The outcomes of these elections could affect interest rate trajectories, fiscal policies and ESG-related regulations, impacting both investor sentiment and issuance volumes. Coupled with global efforts to stabilise inflation and ease cost-of-living pressures, these developments set the stage for a securitisation market that must remain adaptable, resilient and responsive to a world in transition. With markets ever evolving, securitisation will continue to be a dynamic financing tool, offering issuers opportunities to optimise balance sheets and investors access to diversified, structured credit products. The success of securitisation in the coming year will likely hinge on market par - ticipants’ ability to navigate regulatory complex - ity, manage delinquency risks in consumer and corporate sectors and harness opportunities in ESG, synthetic and infrastructure-linked asset classes. With the potential for further rate cuts and policy shifts in major jurisdictions, securiti - sation remains a vital tool for financing the global economy’s ongoing transformation.

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