According to a recent LinkedIn post from Cardo AI, the firm’s latest research points to a sharp decline in traditional true-sale SME asset-backed securities issuance in Europe, falling to €68 billion in the first three quarters of 2025 from €158 billion a year earlier. The post suggests this headline contraction may mask a shift in deal structures rather than a drop in underlying demand.
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The company’s LinkedIn post highlights an “evolution in structure,” implying that risk transfer and funding needs in SME lending may be migrating toward alternative securitization formats or synthetic risk transfer solutions. For investors, this could indicate continued capital markets activity around SME credit, with potential implications for banks’ balance sheet management, securitization arrangers, and technology providers positioned to support more complex deal architectures.
The reference to loan-level performance analysis across Europe suggests Cardo AI is focusing on granular data that could inform risk pricing, portfolio management, and regulatory capital considerations. If investors and lenders increasingly rely on such analytics to navigate changing securitization structures, firms providing data and technology in this niche could see sustained strategic relevance and potential revenue opportunities as the market adapts rather than contracts.