Israel ABS Market Outlook

the abs market in israel is expected to be a key contributor to economic growth in the country for the foreseeable future. while there have been a few bumps along the way, the sector is continuing to move in a positive direction, with the right measures taken, growth is expected to remain strong. there are a number of key drivers of the abs market in israel. one of the key drivers is the increasing demand for structured products, as more residents and firms look to diversify their investments and lower their risk. this is particularly the case with respect to mortgages, as home loans are still requiring structuring in order to spread out and lower long-term risk exposure. also, the number of payments on a loan has been increasing as a way of reducing financial strain. further, the emergence of a sophisticated capital market, with large players, such as hapoalim and leumi, both supporting a healthy level of abs and other asset-backed securities issuance, is also a key driver of growth in the sector. in addition, the continued development of a large and liquid debt securities industry, which is being tapped as a source of funding, is also very important in the abs market. finally, the impact of regulatory reforms in the sector, such as those implemented by the bank of israel in 2002, have had positive impacts on the market. these reforms, and the increasingly positive outlook for the economy as a whole have had a positive effect on the abs market, leading to increased competition and a healthier borrowing environment. overall, the outlook for the abs market in israel remains strong. while it may not grow as fast as neighboring countries, there is still potential for further growth, depending on the ability of investors and issuers to meet a stable demand. looking ahead, the israeli abs market is expected to maintain its momentum and remain an attractive source of funding for residents and firms.