Aussie securitisation market running at fastest pace in years

Sydney

AUSTRALIA'S securitisation market is running at its fastest pace in years, as demand for higher-yielding assets drives investors into asset-backed securities.

Four companies priced securitisations last week, adding A$3.825 billion (S$4 billion) to this year's total. At over A$10.5 billion since the start of the calendar year, asset-backed issues are running at almost double last year's pace, putting the market on course to rival pre-crisis annual totals. "It is normal for there to be flurry of activity in February, following the Christmas break, but this does not usually follow through into March, while four deals in a single week is very unusual," said one DCM manager, who now predicts a relative lull as the recent supply is absorbed.