Australian Securitisation Forum
AOFM and ASF give update on forbearance SPV
The Australian Office of Financial Management (AOFM) and Australian Securitisation Forum (ASF) are finalising terms for a forbearance special-purpose vehicle (SPV), designed to provide relief to nonbank and small bank lenders with securitisation trusts affected by forbearance on loans as a result of COVID-19.
Diversity outstrips volume in New Zealand securitisation
Market participants speaking at the second-ever New Zealand Securitisation Forum reflected on the gains the market has made in the last decade. While collateral diversity has increased, issuance volume and frequency lags as regulatory uncertainty and the economic climate continue to create headwinds.
Market dynamics and collateral outlook support Australian securitisation’s offshore value proposition
An annual investor update in London found the Australian securitisation market – and key European investors – in confident mood despite a complex domestic economic backdrop. Market participants describe a resilient collateral environment and ongoing positive capital market conditions that they believe should linger for the medium term at least.
Securitisation finds its role in New Zealand despite near-term headwinds
Participants in the New Zealand securitisation market believe the asset class has an increasing role to play in the local credit landscape on the back of growing momentum in recent years. Economic and regulatory challenges are likely to put a ceiling on near-term growth but there is a baseline level of confidence in asset quality and the risk-return equation of structured finance.
Australian securitisers ready to withstand asset challenges
Australian mortgage lenders say their books – and the securitisation and covered-bond structures they use to fund them – are of sufficient quality to withstand growing pressure on loan serviceability as rates continue to rise and cost of living challenges grow. Speakers at an Australian Securitisation Forum investor briefing in London noted solid prepayment and serviceability buffers while acknowledging that arrears will inevitably climb.
Getting to grips with the future of work
COVID-19 has profoundly affected how people work, especially in largely urban, professional industries like capital markets. As part of the 2021 Australian Securitisation Forum virtual conference, leaders with a range of perspectives shared their views on whether the shift to wide-scale home working will persist in the long term, how it affects equity across the workforce – particularly through a gender lens – and the value of face-to-face working.
