From AI to Global Risk Shifts, SFNet’s ABCC Highlights the Trends Reshaping Secured Finance

Leaders from across the secured finance industry gathered in Las Vegas in February for the Secured Finance Network’s Annual Asset-Based Capital Conference (ABCC) to discuss the forces reshaping asset-based and middle market lending.

The conference brought together lenders, investors, advisors and industry experts to discuss where credit markets are heading and what it means for the secured finance community at a time of mixed signals in the broader economy.

While equity markets performed well through much of 2025 and both public and private debt markets remained active, uncertainty around interest rates, inflation, labor markets and geopolitical tensions reshaped the way lenders and borrowers view the year ahead. The annual capital markets panel highlighted the positive “risk on” mode in the broader debt markets and in the asset based market throughout most of 2025 and the early part of 2026.  In this environment market participants are confident enough in their credit quality that they are actively seeking new transactions and asset growth. Against a backdrop of limited new supply due to geopolitical risks markets are experiencing a supply demand imbalance which is leading to very favorable terms for borrowers.  Private markets as well are continuing to expand and looking for growth, leading to aggressive terms and pricing in that market as well.

A recurring theme throughout the conference was the growing connection between global political developments and economic outcomes. War, political and economic turmoil force businesses and investors to operate in a more complex and less predictable environment than in previous decades.

These pressures extend well beyond the United States. Public confidence in economic conditions has declined across several G7 economies, reflecting deeper structural challenges facing many developed markets.

Several speakers pointed to a combination of long-term forces shaping government policy around the world, including rising public debt levels, increased defense spending and aging populations. Together, these pressures are placing growing strain on national budgets and economic policymaking.

For lenders and investors operating globally, the implications are significant. Geopolitical developments are increasingly becoming part of how market conditions and investment risks are evaluated.

Technology was another major focus, particularly the growing influence of artificial intelligence in financial services. Conversations throughout the conference explored how AI tools may change the way lenders collect information, analyze risk and manage credit relationships.

Artificial intelligence has moved quickly from a niche topic to one being discussed across nearly every industry. Within banking and lending, however, many practical applications are still emerging.

Participants highlighted several areas where AI begins to show promise. Lending remains a document-heavy process that often requires significant manual review and data entry. AI tools can help extract and organize information from financial statements, collateral reports and other documents, reducing administrative work and improving efficiency.

Risk monitoring is another area where technology may have a growing impact. Asset-based lending relies heavily on borrower and collateral data, and AI systems could allow lenders to monitor those data streams more continuously and identify potential issues earlier than traditional reporting cycles allow.

At the same time, many noted that technological advances are likely to complement rather than replace the core practices of secured lending. Credit decisions will continue to rely on professional judgment, industry expertise and strong borrower relationships.

Another topic that drew strong interest during the conference involved developments in global insurance and reinsurance markets. Rising losses tied to severe weather events are challenging long-standing assumptions about insurance risk and forcing insurers and reinsurers to reassess pricing models and coverage terms.

In response, insurers have begun adjusting policy structures and pricing, and in some regions have reduced their presence in markets that have become increasingly difficult to insure.

While public attention often focuses on homeowner insurance in areas exposed to hurricanes or wildfires, the implications extend much further. Commercial real estate and other insured assets may also be affected as risk transfer markets evolve.

For secured lenders, insurance availability and pricing play an important role in protecting collateral values and structuring loans. As these markets change, lenders may need to think more carefully about how insurance considerations factor into credit decisions and asset valuations.

Taken together, the discussions at ABCC reflected how quickly the secured finance landscape continues to evolve. Economic uncertainty, technological innovation and shifting risk dynamics are all influencing how lenders approach credit decisions and portfolio management, highlighting both the challenges and opportunities that lie ahead for the industry.