Property-backed securitisations made up a larger proportion of issuances in the first quarter of 2020, research suggests.
Peer-to-peer lenders Zopa and Funding Circle have used the securitisation market to package their respective consumer and business loans for institutional investors, but analysis shows there has been more appetite for residential mortgage backed and buy-to-let deals.
Research by DBRS Morningstar found residential mortgage backed securitisations (RMBS) made up 64 per cent of deals in the first three months of 2020 compared with 45 per cent in 2019.
The proportion of consumer debt-backed securitisations rose from six per cent to seven per cent over the same period, while those specifically backed by consumer loans fell from four to one per cent.
DBRS Morningstar said buy-to-let RMBS and commercial mortgage-backed securities have both played a bigger part in deals this year.
The analysis said there was €23bn (£20bn) worth of securitisation deals in the first quarter, up from €17bn in the same period last year, with the UK a major player.
“The beginning of 2020 started strong from an issuance perspective in comparison to the previous year because, the introduction of new regulations, and the classification of simple, transparent and standardised securitisations slowed supply in the first quarter of 2019,” Morningstar said.
“However, this strong start was short lived, ending with a slowdown as the coronavirus forced the shutdown of economies and capital markets.
“However, signs of the markets reopening have started to emerge as we progress through the second quarter and look forward to the remainder of the year.”
Zopa has been involved with three securitisations of its consumer loans.