Judo Bank has tested the waters of the asset-backed bond market for the first time, raising A$500 million via Judo Capital Markets Trust 2023-1. The portfolio earns a yield of 8.37 per cent and has an average loan size of $1 million. It is a securitisation of a portfolio of term business loans, line of credit facilities, and equipment loans to Australian small and medium-sized enterprises. The portfolio also contains a portion of home loans to individuals related to the portfolio’s SME obligors.  Of the portfolio balance, 58 per cent benefits from security over real estate, Moody's Investors Service said in a pre-sale report. Judo Bank had a loan book of $9.1 billion as at July. As of June, 1.6 per cent of Judo’s loan book is 30 or more days in arrears. The bank has written off loans totalling $7.2m which represents less than 0.06 per cent of approximately $12.0 billion of origination. Real estate services comprise 8 per cent of the loans in the trust.