In September, KangaNews hosted representatives of Australia’s most significant nonbank lenders at the first-ever sector roundtable discussion. On the agenda were funding markets and investor relations, the outlook for the Australian housing market and regulatory oversight of the sector.
Firstmac mandated J.P. Morgan and Westpac Institutional Bank to explore a new residential mortgage-backed securities (RMBS) transaction on 21 November, with a potential Australian dollar-denominated RMBS to follow, subject to market conditions.
A detailed list of securitisation transactions issued by nonbanks profiled in the KangaNews Nonbank Yearbook 2017.
Key statistics, issuer information and market data on key nonbank borrowers.
Support from debt investors is a critical component of Australian nonbank lenders’ business models, and the major nonbanks have investor relations high on their priority lists. These issuers have been able to fund their businesses through the credit cycle, and domestic fund managers say they see the appeal of the nonbank value proposition – with appropriately detailed credit work.
Speaking at a roundtable hosted by KangaNews, representatives of Australia’s largest nonbank lenders expressed a degree of confidence that the regulatory impost hanging over the sector may not fundamentally damage their business models. But they are watchful and wary of what they see as the potential for regulatory overreach.