Oct 5, 2026 · 20 min · 8 segments
Brock Wolf, managing director and head of ABS banking at Truist Securities, joins host Patrick Dolan to discuss the US securitization market in 2026…
Brock WolfGuestPatrick DolanHostBrock, the US, uh, esoteric securitization market appears to be strong in twenty twenty-six, continuing to expand after the recovery that began in twenty-four to twenty-five.
It's been a very strong, you know, almost beyond the word constructive, um, market now for the past two-plus years, absent, I would say, you know, just a couple of, of relatively short-term shocks.
Um, the year before that, you know, the sort of the market, um, shock around, uh, what we, you know, affectionately call Liberation Day.
But beyond that, you know, we're-- what we really have seen is a huge amount of capital come into the securitization space, particularly chasing, you know, more yieldy assets, more interesting assets, um, which tend to fall under the rubric of, of esoterics.
And over the past year, you know, across multiple asset classes and across the capital stack, you know, we've seen all-time tights from time to time.
A-and even when we've seen, you know, quote, unquote, "softer markets" or softer weeks, still very, very good execution from a... for our clients.
Um, you know, if you go back, you know, kind of all the way to COVID, which coincidentally is about when I started here at Truist and was right at the same time that the, the new Truist entity, you know, was created, uh, out of the, uh, uh, the merger between BB&T and, and Sun Trust, you know, this has been, uh, a, a new, a new event has sort of come across almost seemingly every year, whether it was COVID or, you know, the war in Ukraine.
And, and notwithstanding those sort of almost annual shocks to the overall markets, um, we continue to see interest, um, in esoterics.
And I think a lot of it has to do with the fact that, you know, the great financial crisis is, is well behind us now.
It's all very much, I think, a part of our consciousness when we think about risk and, and, and sort of how to think about, you know, putting money to work.
But for a lot of the new generation, you know, they're looking and saying, "We have like, you know, eighteen years of really good performance across ABS asset classes, and very little in the way of structures deteriorating, even if, you know, from time to time, we have issues like fraud coming out of Tricolor or something like that." So, I think a lot of investors are realizing that, again, notwithstanding sort of that sort of one-time, you know, GFC meltdown, um, really, really more with subprime mortgages and CDO squares, there is really a, a strong structuring and credit thesis behind ABS.
And, you know, places like esoterics are a great place to put your money when you're looking to get, you know, a little bit more yield, um, than you're gonna get from your more, you know, flow asset classes.
Brock, the US, uh, esoteric securitization market appears to be strong in twenty twenty-six, continuing to expand after the recovery that began in twenty-four to twenty-five.
It's been a very strong, you know, almost beyond the word constructive, um, market now for the past two-plus years, absent, I would say, you know, just a couple of, of relatively short-term shocks.
Um, the year before that, you know, the sort of the market, um, shock around, uh, what we, you know, affectionately call Liberation Day.
But beyond that, you know, we're-- what we really have seen is a huge amount of capital come into the securitization space, particularly chasing, you know, more yieldy assets, more interesting assets, um, which tend to fall under the rubric of, of esoterics.
And over the past year, you know, across multiple asset classes and across the capital stack, you know, we've seen all-time tights from time to time.
A-and even when we've seen, you know, quote, unquote, "softer markets" or softer weeks, still very, very good execution from a... for our clients.
Um, you know, if you go back, you know, kind of all the way to COVID, which coincidentally is about when I started here at Truist and was right at the same time that the, the new Truist entity, you know, was created, uh, out of the, uh, uh, the merger between BB&T and, and Sun Trust, you know, this has been, uh, a, a new, a new event has sort of come across almost seemingly every year, whether it was COVID or, you know, the war in Ukraine.
And, and notwithstanding those sort of almost annual shocks to the overall markets, um, we continue to see interest, um, in esoterics.
And I think a lot of it has to do with the fact that, you know, the great financial crisis is, is well behind us now.
It's all very much, I think, a part of our consciousness when we think about risk and, and, and sort of how to think about, you know, putting money to work.
But for a lot of the new generation, you know, they're looking and saying, "We have like, you know, eighteen years of really good performance across ABS asset classes, and very little in the way of structures deteriorating, even if, you know, from time to time, we have issues like fraud coming out of Tricolor or something like that." So, I think a lot of investors are realizing that, again, notwithstanding sort of that sort of one-time, you know, GFC meltdown, um, really, really more with subprime mortgages and CDO squares, there is really a, a strong structuring and credit thesis behind ABS.
And, you know, places like esoterics are a great place to put your money when you're looking to get, you know, a little bit more yield, um, than you're gonna get from your more, you know, flow asset classes.
The rest of this transcript — segmented and speaker-labeled, so you land on the exact moment something was said
Search every transcript — by keyword, by phrase, or by meaning, across every show Radar indexes
Trends — what is surging across podcasts, measured against its own baseline
Alerts — when a name you follow appears in a newly indexed episode
No account is needed to search Radar.