Fitch Ratings: Further growth in European structured finance issuance expected in 2026

Fitch Ratings has indicated that European structured finance issuance is expected to grow further in 2026, reflecting ongoing demand for alternative financing solutions amid evolving market conditions. This projection aligns with broader trends in the European financial landscape, where neutral outlook for 2026, according to Fitch’s assessment.

The firm’s global sovereign sector outlook, however, has been revised to “deteriorating” due to the ongoing impact of the US-Iran conflict, highlighting regional disparities in credit risk profiles. Despite this, European markets remain relatively stable, with structured finance activity anticipated to benefit from continued investor appetite and supportive regulatory frameworks.

Analysts suggest that growth in this sector will be driven by innovation in product structures and increased participation from institutional investors. As the year progresses, market participants will closely monitor macroeconomic developments and geopolitical risks that could influence issuance trends.