This article, published on 3 October by KangaNews, reports that the Australian dollar securitisation market had surpassed 2023's record volume by 26 September 2024, driven by strong demand for RMBS and ABS.
The article highlights that intermediaries report heightened interest, especially from offshore investors in Japan and the UK. Non-mortgage ABS, such as auto and equipment loans, have contributed significantly, as nonbank lenders fill gaps left by banks exiting the auto loan market.
Banks have also increased RMBS issuance in response to tighter credit spreads and favorable market conditions. New investors, particularly from Asia, are showing growing interest in Australian ABS and RMBS. Mezzanine tranches have been highly sought after, often oversubscribed by a factor of 10.
Despite initial expectations of consolidation among nonbank lenders, competition remains strong. Looking forward, the market is expected to remain robust through 2025, potentially reaching A$100 billion in issuance.
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