As traditional collateral becomes increasingly crowded, securitisation is expanding into new territory. This article explores the rise of esoteric assets, from intellectual property to future receivables, and how they are reshaping risk allocation, structuring innovation, and investor diversification in modern capital markets.
We examine why these assets are gaining traction, the structuring challenges they present, and what their growth signals for the future of securitisation.
Why securitisation is moving into esoteric assets
Traditional securitisation has relied on well-understood collateral. Mortgages, trade receivables and auto loans dominate the market.
As those pools grow more crowded, originators and investors look elsewhere. Consequently, transactions increasingly draw on less conventional assets to build a viable structure.
What counts as an esoteric asset
Esoteric assets sit outside the familiar categories. Intellectual property royalties are one example. Future receivables are another.
These assets raise different questions from conventional collateral. Cash flows can be harder to predict. Valuation is less standardised. Moreover, the structural protections investors ordinarily expect may need adapting to fit the asset.
What it changes for issuers and investors
For issuers, the shift affects how a transaction allocates risk between the parties. It also shapes how the deal is documented, because bespoke assets rarely fit standard forms.
For investors, the appeal is diversification. Esoteric assets offer exposure away from collateral that is already widely held.
Taken together, these developments signal where securitisation is heading. Our article examines why these assets are gaining traction, the structuring challenges they present, and what their growth means for the market. Click the button below to read the publication.
