• This article reveals some of the main findings from the III Annual Report of the Asset Securitization Sector 2025–2026, published by FlexFunds in collaboration with Funds Society.
• The information is aimed at asset managers, advisors, financial executives, and investors seeking detailed insights into the current landscape of asset securitization.
• FlexFunds offers a cost-efficient asset securitization program to create exchange-listed products (ETPs) and improve liquidity across different assets. For more information, feel free to contact our experts.

In the context of modern finance, the search for mechanisms that enable the transformation of illiquid assets into instruments with greater market accessibility has given rise to tools such as asset securitization, a practice increasingly widespread in both developed and emerging markets.

In its III Annual Report of the Asset Securitization Sector 2025–2026, FlexFunds, in collaboration with Funds Society, surveyed more than 100 investment firms across 19 countries. This effort allowed the collection of robust statistics on the asset securitization industry.

The future of securitization, more promising than ever

First, the report highlighted that, despite regulatory challenges, the outlook for securitization is highly positive and encouraging.

Specifically, the survey shows a favorable average rating of 7.5 points, with a median and mode of 8.0 and a deviation of 1.6, reflecting consensus among managers.

A striking 80% gave high scores (57% in the 7–8 range and 23% in 9–10), while only 3% were less optimistic, and none rated securitization in the lowest ranges.

Optimism is supported by securitization’s ability to channel resources into different economic sectors, improve liquidity, and diversify risks by transforming illiquid assets into tradable instruments.

Factors such as the need for financing access in complex markets and the pursuit of efficiency in capital usage reinforce this interest.

Complexity remains an obstacle

Unfortunately, the growing sophistication of structured finance products has hindered their adoption in various markets, especially outside the United States.

According to the III Annual Report of the Asset Securitization Sector 2025–2026, instruments such as ABS (Asset-Backed Securities), CLOs (Collateralized Loan Obligations), and SRTs (Significant Risk Transfers) possess highly complex structures, limiting adoption to specialized investors with advanced infrastructure.

In Europe, despite the STS (Simple, Transparent, and Standardised) framework, heavy regulatory burdens have reduced competitiveness: in 2024 only EUR 245 million were issued, compared to more than USD 1 trillion in the U.S.

Moreover, European insurers allocate barely 1% of their portfolios to these assets, compared to 17% for their U.S. counterparts.

Although opportunities are emerging in non-traditional assets—such as music royalties or data center revenues—the lack of international harmonization and valuation challenges continue to hinder broader expansion.

The survey reflects this concern: managers gave an average rating of 7.2 points with a deviation of 2.1, indicating a diversity of opinions. 65% consider complexity a significant problem, while only 2% view it as irrelevant.

Asset securitization and diversification

The FlexFunds and Funds Society report underscores that not all securitized assets have the same appeal for investors.

Factors such as instrument structure, type of underlying asset, and market conditions influence demand.

For example, ABS backed by consumer loans or auto leasing are highly valued for their liquidity, standardization, and low delinquency, making them preferred by funds and insurers.

In contrast, residential MBS (Mortgage-Backed Securities) carry risks linked to interest rates and prepayments, while CLOs and SRTs offer higher potential returns but require sophisticated analysis.

Meanwhile, esoteric assets, such as music royalties or data center revenues, generate interest in alternative niches, though their low liquidity and complexity keep them largely outside the scope of traditional institutional investors.

The survey indicates a clear preference for traditional assets for future securitization: real estate leads with 47% of responses in the top tier (9–10) and 76% high interest overall, followed by loans and contracts (62%), investment funds (60%), bonds (57%), and equities (52%).

These results suggest a preference for tangible assets with predictable cash flows and established regulatory frameworks.

In a second tier, emerging assets show more divided opinions. Infrastructure and intangibles received 57% and 48% high interest, respectively, while crypto assets reached 55%, though with 13% total disinterest.

ESG assets, despite global pressure, only garnered 30% in the top tier and 22% rejection, reflecting doubts about their maturity and greenwashing risks.

Finally, commodities and currencies showed the least consensus, with less than 45% high interest and high levels of skepticism, due to volatility and low standardization.

To access more statistics and dive deeper into the field of asset securitization, don’t hesitate to download the III Annual Report of the Asset Securitization Sector 2025–2026 easily and for free.