By Hagbarth Strom, General Manager, Debt and Securitisation, Australia
Australia’s securitisation market is experiencing one of its most dynamic growth periods, with strong issuance, intense competition for assets, and growing international engagement. At AMAL, part of IQ-EQ, we’ve identified three core shifts that are reshaping how originators fund growth and how investors allocate risk.
In recent years, the securitisation market in Australia has shifted into high gear. Public issuance in 2024 reached A$80 billion across 100 individual transactions (up from A$52.3 billion in 2023), exceeding previous post-global financial crisis (GFC) records and signaling sustained, diversified demand into 2025. That upswing is being fueled by a deeper investor bench, new structures and a broader mix of asset classes, creating fresh opportunities for both established market players and newer issuers.
Beneath the headline growth, three structural shifts are decisively reshaping how Australian originators fund their books and where global capital meets the Australian market.
1. Alternate funding structures are a real option, not just a talking point
Historically, many Australian non-bank lenders focused on building and retaining their own books. They originate securities into a warehouse, term out to capital markets, and repeat. But over the last 12–18 months, we’ve seen broader acceptance of whole loan sales and forward flow arrangements, providing fresh alternatives to the traditional model.
Whole loan sale vs. forward flow
- Whole loan sale: An investor purchases a defined book of loans outright. The economic interest transfers, and the loans run off
- Forward flow: An investor agrees to purchase a set volume of newly originated loans each month over a defined period
What alternate funding structures unlock:
- Diversified liquidity: These trades provide a complementary outlet when capital markets windows or pricing are less predictable
- Strategic expansion: Forward flow can allow lenders to write loans that don’t fit existing warehouse parameters, while still earning servicing fees and building track record
- Engaged global capital: Large international private credit and alternatives firms are actively pursuing Australian loan flow.
2. Alternate financiers are broadening the investor base
One of the clearest shifts in the Australian market is who is providing term and warehouse funding. Domestic banks have been joined by a growing cohort of offshore banks and private credit houses. (While the domestic banks’ own lending has been highly curtailed post-GFC, they still remain some of the largest providers of warehouse funding.)
That rebalancing shows up clearly in the data. RBC’s 2025 securitisation outlook notes that non-bank residential mortgage-backed securities (RMBS) issuance reached a record A$33.89 billion in 2024, with similar or higher volumes expected in 2025. Non-bank issuers have also become the dominant driver of asset-backed securities (ABS) growth, with issuance expected to represent ~25% of total securitisation volume in 2025.
This increased demand is being met by a wider bench of funders:
- Offshore banks have built meaningful Australian books and are actively competing with domestic banks for senior positions in warehouse structures
- Private credit and alternatives managers are no longer confined to niche mezzanine roles. Some now participate at or near senior levels
- Mezzanine tranches are benefiting from deeper demand, with strong offshore participation and healthy oversubscription
For originators, this means more choice in how they structure and scale facilities. For investors and financiers, it translates into more differentiated opportunities across the capital stack, making it easier to find exposures aligned to mandate, risk appetite and return targets.
3. New asset classes are accessing warehouse capital
Traditional collateral types (RMBS, auto loans and consumer receivables) still anchor the Australian securitisation market. But a broader range of asset classes is now accessing warehouse funding, including:
- Small to medium-sized enterprise (SME) lending and working capital products (e.g. invoice finance, insurance premium funding, bridging)
- Personal loan platforms and specialty finance
- Equipment finance
- Real estate-backed private credit
That last category is especially notable. Real estate-backed private credit loans are larger and less granular, demanding careful structuring and risk management. Historically, these features made scalable warehouse solutions difficult. But today’s competitive funding dynamics and the maturity of local investor expertise mean well-structured real estate-backed facilities are increasingly viable, opening institutional channels to a previously niche corner of the market.
Securitisation trends in practice: JustFund’s landmark $200m facility
The July 2025 funding facility for JustFund is a real-world example of these trends converging. JustFund, a specialist lender that finances family law legal costs against expected settlements, secured a A$200 million warehouse facility arranged by MA Financial, following a competitive process involving multiple major banks and institutional credit funds.
This facility showcases some of the new asset classes accessing securitisation funding, including litigation finance with a clear social impact angle. It also highlights the role of competition between alternate financiers, with private credit and bank capital competing to back a specialist originator. In all, it’s a concise illustration of where the market is heading: more specialised originators, more diverse capital, and structures designed around precise risk/return and impact profiles.
Securitisation market outlook into 2026
Looking ahead, Australia’s securitisation market appears well supported rather than overheated. A broader mix of senior and mezzanine providers, alternative structures and specialist lenders is giving new and established issuers alike more practical ways to scale. Beneath the headlines, underlying asset pools continue to build, and investors are responding with a measured stance: active and engaged, but increasingly selective on pricing and risk, especially at the senior end of the stack. We see plenty of opportunity ahead, anchored by a healthy respect for discipline.
Join us at ASF 2025
As AMAL, part of IQ-EQ, we sit at the intersection of local originators and global capital, which gives us a clear view of how these trends translate into practical funding options. I’m pleased to share that I’ll be moderating a panel on “Scale and capital efficiency for newer issuers” at the Australian Securitisation Forum Conference on 25-26 November 2025.
If you’ll be at ASF, please stop by and say hello! We’d welcome a conversation about how these trends are playing out in your funding strategy.
Contact our securitisation team today for more on how we can support warehouse options, alternative structures, or an up-and-coming asset class.
