Asset-backed competitiveness back on agenda as market improves

As deals continue to be brought to market the Australian asset-backed security (ABS) market is showing signs of renewed life and returning investor confidence. While participants say pricing is not yet tight enough for smaller mortgage providers to borrow at levels competitive with the unsecured funding of larger authorised deposit-taking institutions (ADI), there is shared optimism that something closer to parity can be attained and other names will enter the market in the coming months.