News
The Australian nonbank securitisation market has been a story of almost unimpeded progress for the past decade or more. It is facing new challenges in 2022 and its resilience is being tested in more ways than one. But market participants retain confidence in the nonbank sector’s overall health and the value proposition of its core funding instrument.
Attention in 2022 has turned to the undeniable challenges the credit market is facing – perhaps most notably higher rates and cost of living, and pressure on the funding side. But Australia’s leading nonbank lenders – speaking at a roundtable discussion hosted by KangaNews and Natixis – say the new environment carries opportunities for growth.
The Australian nonbank securitisation market has been a story of almost unimpeded progress for the past decade or more. It is facing new challenges in 2022 and its resilience is being tested in more ways than one. But market participants retain confidence in the nonbank sector’s overall health and the value proposition of its core funding instrument.
Contact Energy says retail investors anchored its latest trade, attracted by the yield on offer as well as the issuer’s decarbonisation story. The support of an investor base that primarily tracks outright yield allowed the issuer to print in an otherwise volatile market.
It was another low-issuance week in the Australasian primary market. Auckland Airport and MyState Bank both printed floating-rate notes while securitisation flow continued with residential mortgage-backed securities deals from Pepper Money, Firstmac and Avanti Finance.
