ABS a funding option
Bank of Queensland expects to sell asset-backed securities, backed by leases and some other business loans, as one option for wholesale funding.Ewan Cameron, the bank's chief financial officer, told an investor briefing yesterday that "our plan is to issue ABS securitisation in the next two months. "There's a strong appetite for this paper from both domestic and overseas investors, and it compares favourably to alternate sources."There's been little evidence so far of asset-backed funding using any asset class except home loans when it comes to Australian lenders, Macquarie Bank has been a rare exception.Cameron said BOQ will also look at senior unsecured debt, as well as mortgage-backed securities, to satisfy wholesale funding needs.