According to a recent LinkedIn post from Cardo AI, the company’s latest research points to a sharp decline in traditional true-sale SME asset-backed securities issuance in Europe, from €158 billion to €68 billion in the first three quarters of 2025. The post suggests that this headline contraction may mask a structural evolution in how SME credit risk is being packaged and transferred.
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The company’s LinkedIn post highlights that demand for SME securitization exposure may be holding up, even as issuance formats shift toward alternative structures such as synthetic risk transfer and potentially more bespoke capital-markets solutions. For investors, this could indicate ongoing opportunities in European SME credit, but with greater emphasis on understanding structural complexity and loan-level performance.
As referenced in the post, Cardo AI directs readers to a detailed report on loan-level performance across Europe, implying that granular data analytics are increasingly important for assessing risk in this evolving segment. If the company is positioning itself as a provider of such analytics in securitization and structured finance markets, this focus could strengthen its role in the value chain and support future revenue growth tied to data and technology services for capital markets clients.