Banks and non-banks have continued to make the most of mortgage-backed and asset-backed funding in the debt capital market, with the highest rate of growth in more than five years over the June 2024 quarter.

ABS data on Assets of Australian Securitisers shows residential mortgages funded vua RMBS increased $10.3 billion, or eight per cent, to $141.4 million. This represents around six per cent of all mortgages funded in Australia.

“it’s been a very stromg year. Credit markey conditions have been really favourable”  Chris Dalton, executive director of the Australian Securitisation Forum said.

“There’s been a normalisation of credit activity, with banks repaying the TFF, And non-banks have come into the market on a more competitive basis” he said,

“Some new isssuers have come in, such as ORDE Financial, who got a $1 billion RMBS away.

“A few years ago it was hard to get away half that.”

Looking ahead, Dalton said “things are ticking along very nicely. So I expect a record year for 2024.”