The most highly attended conference in recent years brought together leaders from government, capital markets, and tech institutions to discuss the current state and future of the securitization markets.
SFVegas remains the optimal environment for fostering healthy dialogue aimed at making markets more efficient and transparent by creating innovative, new solutions. RiskSpan is delighted to be engaged in this dialogue.
Here are our key takeaways from the conference.
Sticky inflation and high interest rates are creating a macroeconomic environment that is particularly conducive to bringing new residential mortgage products to market. Market demand for HELOCs and other second-lien products is driving innovation around these offerings and accelerating their acceptance. ARM production is growing rapidly and is at some of the highest levels in over a decade.
Product Innovation is moving forward with both consumers and investors in mind. Consumers are in search of access to better financing while investors seek new ways to participate in these markets.
Data is driving the dialogue. New scoring tools (FICO10T and Vantage Score 4.0), new ESG-related data and better disclosures are creating a much more transparent investment process
Cloud-native applications continue to make analytics processing cheaper and differentiate how investors and their counterparties seek relative value. Efficiency in data management and analytics separates winner and losers.
Accelerated adoption of AI-driven solutions will drive market operational efficiency in the coming years. The adoption and use cases are just beginning to be uncovered.
New Investors, New Ideas
New investors are bringing fresh capital to the market with new ideas on how to maximize risk-adjusted returns. Investors backed by private equity are seeking new returns in virtually every category of structured markets: MSRs, BPLs and CLOs. Interest in these classes will only grow in the coming years as more investors seek to maximize returns in private assets.
The international investor community remains strong as global asset allocation is shifting towards the U.S. and fewer opportunities exist in overseas markets
RiskSpan sits at the intersection of all of these trends by helping structured finance investors of every type to leverage technology and data solutions that uncover market opportunities, mitigate risks and deliver new products
Great conference! Get in touch with us to learn more about how RiskSpan help clients simplify, scale, and transform their structured finance analytics!