Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Australian securitisation still strong

Staff Reporter 4 minute read

A rollercoaster week has seen international share markets stumble and then stagger to their feet in the wake of a battered US sub-prime sector.

The impact of market uncertainty remains a fundamental concern for Australia’s lenders.

While lenders sourcing extendible commercial paper from the States have been hardest hit, those that secure funds via securitisation are rightly worried about how tightening liquidity may increase the cost of securing funds.

“Debt capital markets globally are adjusting to short-term market turbulence,” points out John Empey, CEO at non-conforming lender Pepper Homeloans.

Advertisement
Advertisement

According to Empey it’s still too early to call whether Australian lenders are going to see a dramatic cost in raising capital through securitisation.

“It’s impossible to predict at the moment what levels the markets will settle at,” he told Mortgage Business this morning.

Jon Denovan, a partner with Gadens Lawyers, concurs with Empey.

“No one foresaw the collapse and flow on effects of the US sub-prime market, and I doubt anyone could foretell what will happen in the future,” he says.

In terms of any fallout from the sub-prime woes, Denvon says there have been some “diametric” views.

PROMOTED CONTENT


Denovan, an industry veteran who has witnessed three or four similar shakeups, believes that normality will return and the market will bounce back.

“Australia has one of the lowest default rates in the world; with good credit ratings as well as a stable political, economical and commercial environment,” he says.

“We’re an attractive target for those looking to conduct business through securitisation.” 

Australian securitisation still strong
default
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

default

 

more from the adviser
stuart Stoyan new headshot

Breaking News

Non-bank founder-CEO resigns

The chief executive of a non-bank personal lender has resigned ...

covid vaccine ta

Breaking News

Unvaccinated Victorian brokers may risk fines if they work outside of home

Starting today (15 October), unvaccinated brokers across Victori...

Paul Wright ta

Breaking News

MoneyQuest’s $1bn broker sells franchise

The owner of MoneyQuest Wollongong has sold his franchise and wil...