Listen to the latest episode of Credit Exchange with Lisa Lee
Published in London & New York
10 Queen Street Place, London
1345 Avenue of the Americas, New York
Creditflux is an
company
© Creditflux Ltd 2025. All rights reserved. Available by subscription only.
Event CLO Symposium 2025
Mapping the present and future of credit
by Lisa Lee
Keynote speakers at this year’s Creditflux Symposium highlighted the success of credit markets during recent volatility and argued that a wave of securitisation could drive growth in Europe
The Creditflux CLO Symposium expanded into a two-day conference in 2025 to allow it to cater to the USD 1.4tn global CLO community, and address issues in the increasingly diverse European securitisation landscape. More than 1,000 people attended in-person and virtually at the Nobu Hotel in London to hear from experts on CLOs, ABF (see box), CMBS and SRTs.
The geopolitical backdrop kicked off both Wednesday and Thursday sessions. In particular, the approach of US President Donald Trump has ushered in an era of policy-driven uncertainty for financial markets and economic growth worldwide. But recent volatility has showcased a growing resiliency in credit markets.
Lisa Lee, Creditflux managing editor, and KKR’s Eddie O’Neill, analyse the CLO landscape
An orderly repricing of risk
Eddie O’Neill, co-head of global liquid credit at KKR, highlighted the stability seen in credit markets during the period of volatility that whipped global financial markets in April. “They behaved quite differently this time,” he said. Even as equity markets were highly volatile, credit markets did see some selling off, but in a very orderly repricing of risk. There was “no blood in the streets, no sustained buying opportunities”, O’Neill said.
Europe may benefit, especially as politicians look to increase fiscal spending and regulators plan to overhaul its securitisation regime. While European ABS issuance volumes, excluding CLOs, reached EUR 96.7bn in 2024 — a 43% increase from 2023’s total and the highest level since the global financial crisis — the amount is paltry compared to that in the US. The amount of GDP in Europe associated with securitisation is around 0.3% of GDP, whereas in the US it’s around 4%, according to data from Apollo.
There was no blood in the streets, no sustained buying opportunities
Eddie O’Neill
Co-head of global liquid credit
KKR
“There’s been a stark contrast between US and European economic growth over the past 15 years and much of what’s driven the outperformance in the US can be attributed to its capital markets,” said Phil Aldis, co-head of European asset-backed finance at Apollo. “I think everyone’s realised here in Europe, including our policymakers, that we need to reverse this trend.”
For Aldis, it is clear that long-dated private capital will play a crucial role in helping to finance commitments for new infrastructure, the ongoing energy transition and data centres, as well as recent increases in defence commitments. This is because governments are not in a position to finance it all, while banks are not natural holders of long-term debt and lack the aggregate capacity to support the required level of financing.
Much of what’s driven outperformance in the US can be attributed to its capital markets
Phil Aldis
Co-head of European asset-backed finance
Apollo
“In the US, banks hold only about 20% of non-government debt, with the vast majority funded by what you could call the investment marketplace — pensions, insurers, asset managers,” Aldis told attendees. “In Europe, banks are closer to 70%, with much more limited participation from pensions and insurers today. If we want the same amount of private capital funding applied to Europe as you see in the US, there’s about a USD 12tn gap. It is a huge opportunity.”
Evis Progonati, managing editor, Debtwire ABS, and Phil Aldis of Apollo, discuss the outlook for ABF
John Bringardner, executive editor, Debtwire, launches the 2025 Symposium
A quiet reshaping of credit markets
by Evis Progonati
As traditional capital markets wrestle with volatility, tighter regulation and declining stability across global economies, asset-based finance (ABF) is emerging as an opportunity for investors seeking yield, stability and diversification.
At its core, ABF refers to lending that is backed by specific, tangible assets or cashflows — everything from receivables and inventory to real estate, royalties and infrastructure. What makes it compelling is its resilience. ABF offers secured exposure in a market increasingly wary of unsecured risk, and it functions largely outside the traditional banking system, providing much needed capital where regulated lenders have pulled back.
The ABF market is poised to grow to USD 7tn by 2027
Estimates vary, but, according to Apollo, the total addressable ABF market is around USD 20tn with less than USD 1tn currently allocated to dedicated ABF strategies — a sign of significant untapped potential. KKR believes the ABF market is poised to grow to USD 7tn by 2027.
This gap is attracting long-term capital allocators — pension funds, insurance companies and sovereign wealth funds — which are rotating out of public credit and into private alternatives. They are drawn not only by ABF’s relative value, but also by its structural advantages: low correlation to public markets, customisable risk profiles and visibility into underlying cashflows.
Driving this trend is a broader transformation in global finance. The decline in the size of the securitisation market since 2008, along with geopolitical fragmentation and new capital rules, is reshaping how money moves. As a result, investors are looking for ways to build resilience into portfolios, and ABF offers a practical, scalable solution.
As the financial system continues to evolve, ABF may prove to be not just a trend, but a cornerstone of the next generation of credit.
