On Sunday, February 26th, the T-REX team is heading to SFVegas in Nevada. SFVegas is the largest capital markets conference in the world and boasts an agenda that will not only inspire and challenge but also fuel thousands of conversations and connections. We eagerly anticipate the opportunity to learn more about the trends shaping the world of structured finance and the chance to attend the many noteworthy sessions. Below are just a few of the ones we’re most excited for.
Market Beat: New & Developing Asset Classes Using ABS in a Difficult Market
Monday 2/27 3:10-4:00
Assets help define almost every structured finance deal and this session will shed light on what deals investors will gravitate towards in 2023. Amid changing interest rates and shifting deal economics, increased investment in new and burgeoning asset classes is critical to striking the correct balance of yield and diversification, as well as ensuring ongoing access to capital.
Couple current market conditions with the continued weakening of the U.S. dollar, and Emerging Market (EM) debt priced in non-dollar currencies is poised to be in an especially strong position for investment. In contrast, asset classes heavily reliant on the economy and consumer behavior, such as Buy Now Pay Later may face headwinds and a decrease in issuances.
Consumer and marketplace bonds remained strong in 2022, demonstrating a modest increase in market size but a continued dominance of the ABS esoteric market. In addition, deals have continued to see an increase in private transactions, whether they be forward-flow agreements or non-public transactions.
Overall, the performance of asset classes will depend largely on how central banks proceed, particularly the U.S. Federal Reserve. As they navigate this down turning market, any move made could impact which asset classes thrive. Intervention, legislation, or otherwise, could drastically increase the appeal of an asset—just look at what the IRA is poised to do for renewables.
Sustainability Watch: ESG and the State of Financial Regulation
Tuesday 2/28 3:10-4:00
ESG is top-of-mind among investors across financial markets, and structured finance professionals are no exception. As regulation evolves to accelerate progress in meeting the goals of the Paris Agreement and protecting against greenwashing, investors will be increasingly committed to ESG reporting and keen for transparency from issuers.
This sentiment was echoed in the Structured Finance Association’s (SFA) response to the SEC’s proposed rule “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” As part of their response, which largely agreed with the stipulations, the SFA established an ESG reporting initiative with the goal of developing an ESG disclosure and reporting framework for the securitization market.
Similarly, in the EU, the second phase of the Sustainable Finance Disclosure Regulation (SFDR) places the focus on transparency by now requiring fund managers to provide a clear explanation of their approach to every investor.
Couple these rules with the newly enacted ESG regulatory requirement for public companies in the UK and it’s clear that forward-thinking investment firms must provide real transparency into their research and investment processes.
Technology Trends in Securitization
Wednesday 3/1 9:15-10:05
Technology has been sweeping the world of securitization and just like many in the industry, we’re eager to hear from our fintech peers and investor community on their 2023 predictions. There’s no doubt climate tech will continue to expand, aiding in ESG data collection and measurement, and it will be interesting to see what other tech will take the spotlight at SFVegas.
Blockchain technology has the opportunity to drastically improve securitized deals in a number of ways. For one, its ability to establish a single source of truth, consistent among all parties involved in a deal could drastically reduce inefficiencies and costs by providing trackable, transparent, and auditable data throughout the securitization lifecycle.
Real estate, an industry heavily reliant on legacy systems, is also ripe for a tech overhaul. Early adopters of emerging property technology have the opportunity to not only take advantage of the market but also more easily mitigate rising industry costs.
In general, as the number of securitizations continues to grow, so will the number of deals, meaning there will be an increasing reliance on technology to do the heavy lifting for portfolio management. To that end, data aggregation and standardization will be crucial across every asset class, allowing more players to actively take part in any deal. Technology is leading the way to fill this void, particularly in the world of private credit.
T-REX Director of Client Development Benjamin Ross will be speaking on this panel along with leaders from Percent, Risk Span, Oasis Pro, Lev, and Dentons. Make sure to attend and hear what trends T-REX is planning for in 2023.
Connect with Team T-REX at SFVegas 2023
Meet up with team T-REX at booth #30, or book a meeting below. Either way, make sure to stop by and pick up some great T-REX branded swag!
We look forward to seeing new faces and discussing the sessions above as well as how T-REX is helping accelerate sustainable investment in complex markets. As deals continue to gain intricacies, it’s vital that organizations be able to streamline their workflows and drive much-needed efficiencies throughout the lifecycle of complex deals.