Australian Prudential Regulation Authority
Reflect and reposition
After hopefully overcoming the worst of the COVID-19 pandemic, the Australian securitisation industry is taking stock of a period of resilience and a reshaped competitive landscape. Top of mind for market participants are the way crisis response has changed the cost of funding unevenly for different issuer types and mooted changes to responsible-lending rules.
No let-up in mutual banks’ search for scale
The KangaNews Mutual Sector Wholesale Funding Seminar took place in Sydney on 29 August at an important juncture for the sector. A wide-reaching change to how smaller banks’ liquidity is regulated has been put on hold but there is keen awareness that there is more to come in this space.
Mutual banks managing sector flux
The pace of change in Australia’s mutual bank sector is already dramatic and may be accelerating further. Speakers at the KangaNews Mutual Sector Wholesale Funding Seminar, which took place in Sydney on 29 August, shared perspectives on how the sector is adapting to these shifting currents and emerging challenges.
Solid foundations more important than records in SSA Kangaroo sector
The pace of early-year SSA Kangaroo issuance in 2024 outstripped all previous records. Whether or not the full year produces record supply once more – and intermediaries have their doubts that the tailwinds of 2023 will remain in place – there are reasons to believe the sector has reached a new level of baseline demand and thus deal flow.
Securitisation sets flight path to minimise turbulence
The Australian and New Zealand securitisation sector has grown significantly in recent years, driven by a proliferation of nonbank lenders. With rates rising for the first time in years and an economic downturn on the horizon, the market is readying itself for ongoing challenges. But participants at the Australian Securitisation Forum’s annual conference, which attracted a record attendance to Sydney at the end of 2022, say the industry is well positioned to manage them.
Knock-on effects
The Australian Prudential Regulation Authority’s decision to reduce the size of the committed liquidity facility to zero by the end of next year may not be entirely surprising but it has ramifications across the local fixed-income market. The most obvious are on the demand side, but a closer examination of the decision’s implications also reveals likely consequences for supply dynamics.
