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Jessica Darnbrough
Australia’s non-bank players will remain on the back foot for some time, one industry stakeholder has claimed.
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Speaking to The Adviser, Pepper’s chief executive officer Patrick Tuttle said for the non-bank sector to truly compete, the capital debt markets needs to open up – a developement that is yet to occur.
“For the non-bank lenders to truly compete, we need to have an active and liquid RMBS market. At the moment, things are not where they need to be,” he said.
“There have only been three RMBS deals this year, which is not great.
“That said, three deals in five months is a step in the right direction. If the market continues on this trajectory, then we could see the non-bank sector start to return to its former glory.
Earlier this month, Pepper priced its first RMBS deal for 2012 and the first non-conforming RMBS transaction in Australia since mid-2011.
While the pricing was quite high, Mr Tuttle said he was happy to see the issue was well supported by a total of 11 accounts, including 9 domestic investors and 2 offshore investors, many of whom are repeat buyers.
“This transaction once again shows Pepper’s strength as a quality originator, servicer and issuer and demonstrates conclusively that there is significant demand in the market for paper of this type.”
