@ChallengerIM.
Australia’s securitisation market is experiencing record momentum, with a record year of issuance in 2024, with AUD$80 billion issued publicly, while Q3 2025 has been the busiest Q3 on record. Non-bank lenders, buoyed by post-Royal Commission bank disintermediation, now dominate issuance, relying heavily on securitisation for funding. Offshore investor appetite is strong, driven by Australia’s political stability, robust asset performance, and yield premiums over UK and European comparables.
Public markets have broadened across asset classes, with core mortgage-backed issuance increasingly complimented by increasing ABS issuance, which now accounts for 28% of total volume, with auto and equipment finance leading the charge. Liquidity is improving, supported by a widening investor base, active BWIC auctions and strong primary activity.
Private ABS markets have matured, offering access to unrated and rated warehouse facilities plus club-style placements across emerging asset classes like bridge finance, jumbo residential, and strata loans.
Challenger Investment Management explore how Australian RMBS and ABS continue to show exceptional credit performance, with negligible losses even through the GFC. For investors seeking diversification, yield, and resilience, Australia’s securitisation market offers a compelling and scalable opportunity across both public and private structures.
