The Australian Securitisation Forum’s 2023 annual conference attracted a record number of delegates – well over a thousand attended – and offered its most wide-ranging agenda ever. The securitisation industry has navigated higher rates and increasing global uncertainty well to date, with record volume printing in 2023 and a notable uptick in collateral diversity. The road ahead may be tricky but the market is facing it with confidence.

After a year of limited capital market issuance – domestically and offshore – there might be grounds for pessimism in the Australian corporate debt market. But a group of analysts, issuers and investors who gathered at a discussion hosted by Fitch Ratings and KangaNews in November 2022 say Australian credits are relatively well positioned as and when confidence returns to the market, despite the obvious challenges of the past year.

Transition to a more sustainable economy is increasingly driving investment and business decisions. While climate has been a key focus, market participants are now moving to add natural capital to their calculations and pressing ahead with more socially focused projects, according to speakers at the KangaNews Sustainable Debt Summit, which took place in Sydney in late May.

Australia’s securitisation market may be on the cusp of an environmental, social and governance acceleration. Clean Energy Finance Corporation, Moody’s Analytics and KangaNews Sustainable Finance gathered a group of leading securitisation investors to discuss buy-side requirements in this space – finding a need for more, and more granular, data.

Market talk is growing about a potential return to offshore issuance by Australian securitisation sponsors – including some nonmortgage asset-backed securities – if, as expected, issuance needs remain high while domestic market tailwinds abate. Australian investors note recent and expected developments in the credit market could soften demand and issuers are already starting to venture offshore once more.

Market talk is growing about a potential return to offshore issuance by Australian securitisation issuers – including some nonmortgage asset-backed securities – if supply continues to grow and spreads widen. Despite a record year and a strong October, some investors note recent and expected developments in the credit market could soften demand as issuers prep further deals to finish out the year.

Australia’s nonbank financial institutions are no strangers to the concept of chasing competitive advantage wherever they can find it. A roundtable hosted by KangaNews and Perpetual Corporate Trust explores ways in which digitalisation is delivering for nonbanks in the data, credit and funding spaces.

IFM Investors has set 2030 targets for emissions-reduction in its largest investment sector – infrastructure – as part of the asset manager’s drive to achieve net zero across its funds by 2050. IFM expects to disclose similar interim plans for the equity, private-equity and debt asset classes in the coming months.

Discussions at the KangaNews Sustainable Debt Summit 2021 virtual event in June suggest market engagement with environmental, social and governance issues continues to deepen. Norms in sustainability-linked instruments are quickly solidifying while developments in accounting, disclosure and stakeholder engagement are also contributing to momentum.

Australian corporate and nonbank borrowers have made the most of a playing field left open to them by the absence of major-bank senior bond issuance since early 2020. Whether the credit market remains as deep for these borrowers once banks return is one of the biggest questions heading into the second half of 2021.