News

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 flow continued to occupy screens in the week ending 31 May. Amid a clutch of mandates for June, HSBC priced an upsized A$2 billion Lion residential mortgage-backed securities deal – adding to authorised deposit-taking institution activity – while OurMoneyMarket and CNH Industrial Capital Australia printed asset-backed securities transactions. Meanwhile, corporate flow pressed on, including a 7.5-year Kangaroo from Auckland International Airport and domestic debut at 10 years by Flinders Port Holdings.

Regulatory scrutiny has brought greenwashing risk to the front of mind for Australian asset managers, causing some to avoid environmental, social or governance claims altogether. While tighter standards are often touted as the solution for increased clarity, speakers at Responsible Investment Association Australasia’s annual conference described a world of complexity.

Offshore investor support enabled NOW Finance to issue an asset-backed securities transaction that was more than twice the size of its previous deal, the issuer says. Risk-retention compliance was key in securing the offshore bid, and issuer and lead are confident that, with this work complete, appetite will be robust for future deals.