France ABS Market Outlook

france has grown to become a major player in the securitized asset-backed securities (abs) market over the years. it has traditionally featured strong presence of government-backed entities such as the caisse des dépôts et consignations and the agence france trésor which are both long established investors and arrangers in the sector. despite the post-crisis regulation tightening, the french abs market has been able to maintain its buoyancy, a trend that is expected to continue in the upcoming years. recently, investors in the french abs market have become more diversified, moving away from the traditional focus on government-backed securities to more private issuers. this is attributed to the increase in awareness among investors regarding the potential of the asset class in creating attractive returns, particularly in the current low-interest rate environment. the french regulatory framework has been supportive of the development of the country’s abs market. this has allowed for the issuance of a wide variety of asset-backed securities that suit the different needs of the market participants. this includes structures such as covered bonds, project financings backed by charge over commercial receivables, private placements, venture capital funds and special purpose vehicles. the country’s strong securitization framework has also allowed for the development of the french residential mortgage-backed securities (rmbs) market. the rmbs market has grown exponentially in france and is currently one of the most vibrant markets in europe. this has been aided by the fact that the french housing market remains one of the most attractive in the region. looking at the next 15 years, the french abs market will continue to develop due to the presence of a supportive regulatory climate, a diverse investor base and a well-established infrastructure. in addition, the continued emergence of new asset classes such as green abs will drive the market forward and create exponential opportunities for issuers and investors alike.