According to a recent LinkedIn post from Cardo AI, the firm’s latest research points to a sharp decline in traditional true-sale SME ABS issuance in Europe, from €158 billion to €68 billion in the first three quarters of 2025. The post indicates that this shift may reflect a change in deal structures rather than a simple contraction in securitization demand.
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The company’s LinkedIn post highlights that investors may need to focus on evolving transaction formats, such as alternative risk-transfer or structured solutions, to understand the real dynamics of SME credit funding. For Cardo AI, positioning its analytics and reporting around loan-level performance across Europe could strengthen its role as a data and technology provider to securitization and capital-markets participants.
The post suggests that, if demand is indeed stable while structures evolve, issuance volumes could reappear in other formats, impacting how banks, originators, and investors manage regulatory capital and credit risk. This environment may support ongoing demand for Cardo AI’s tools that help analyze granular SME loan performance and navigate structural changes in European structured finance markets.