FABN issuance reaches record high in H1 – Fitch

Written by Michael Griffiths

21/08/2025

Funding agreement-backed note (FABN) issuance reached a new record in the first half of 2025, with $43.2bn placed across 24 issuers, Fitch Ratings has revealed.

The credit rating agency said that January had seen a particularly strong start, contributing to volumes that exceeded the previous H1 record, and marking a 21% year-over-year increase from H1 2024.

FABNs are securities that are backed by a funding agreement, or a deposit-type contract, and issued by life insurers. Of the 24 issuers in H1 2025, 16 were Fitch-rated, accounting for 81% of total market volume.

Fitch highlighted that this record activity followed a “robust” 2024, when FABN issuance hit $58bn, up 70% from the $34bn the credit rater reported in 2023.

The first half of 2025 benefited from “tight credit spreads”, “favourable pricing”, and “continued demand for spread-based income”, Fitch stated, in addition to a rising and more diverse issuer base.

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