Record inflation and rising interest rates spell mounting pressure on collateral performance in consumer-related securitizations, although resilient labor markets may help cushion the blow. For corporate-backed transactions, credit prospects will also be dimmer in 2023, although we expect only a moderate rise in the speculative-grade corporate default rate. Although the effects of higher prices and interest rates could put pressure on structured finance ratings, they have remained largely stable through recent periods of stress, such as the pandemic. European securitization issuance may remain flat at about €80 billion in 2023, given greater interest rate certainty and normalizing monetary policy but muted underlying lending and a smaller call pipeline.