Kurumsal Finans ve Strateji Rehberi | Finance & Strategy Insights

Securitization is the process of transforming illiquid assets, receivables, or projects into marketable securities to share risk and offer them to investors. From a financial management perspective, it can be summarized as the conversion of banks’ long-term loans or low-liquidity assets into tradable financial instruments in capital markets.

Current State in Turkey

The securitization market in Turkey remains limited in scope. According to data from the Capital Markets Board of Turkey (SPK), the total issuance of Asset-Backed Securities (ABS) and Mortgage-Backed Securities (MBS) in 2023 amounted to approximately 6.5 billion TL.

In contrast, Turkey’s total credit stock exceeds 12.5 trillion TL. This means that securitization accounts for less than 0.1% of the total credit stock. In Europe, however, this ratio exceeded 10% in 2023.

Why Has It Not Developed?

• Legal and Regulatory Uncertainties: Lack of clear tax incentives and complex issuance processes.
• Limited Investor Base: Institutional investors dominate in Turkey, with low participation from retail investors.
• Lack of Transparent Data: Insufficient regular and reliable information on the performance of receivable pools.

What Does It Mean for Retail Investors?

For retail investors, securitization products represent an alternative investment vehicle. For example:

• Higher Return Potential: They can offer higher interest rates compared to bank deposits.
• Portfolio Diversification: They provide a different risk-return profile alongside stocks and bonds.
• Accessibility for Small Investors: SPK regulations enable ABS to be traded on the stock exchange, making them accessible to retail investors.

However, two key points should be noted:

• Risk Awareness: The repayment of these products depends on the performance of underlying receivables (e.g., loan portfolios), making them less risk-free than fixed-income government bonds.
• Liquidity Risk: Due to low issuance volumes, trading opportunities in the secondary market may be limited.

Future Outlook

In the coming period, Turkey has growth potential in the following areas:

• ESG-Compliant Securitization: Issuances backed by sustainable projects, such as renewable energy.
• SME Receivables Securitization: Transforming small and medium enterprise receivables into securities.
• Fintech-Supported Transparent Receivable Pools: Leveraging technology for greater transparency and accessibility.

In particular, technology-driven transparent platforms can make risks more understandable and accessible for retail investors, making the securitization market more attractive.