Non-bank lender Firstmac is off the selling block for now sources say, after discussions with banker Goldman Sachs for Queensland lender fell through.
According to a report in the Australian Financial Review (AFR), the non-bank engaged with Goldman Sachs to lead its foray into international securitisation markets, however, the discussions have been put on ice.
Firstmac is writing around $250 million to $300 million of loans each month, but the AFR said this growth is pushing the limits of what the domestic securitisation market can provide, with experts estimating there’s only enough capacity to fund around $2 billion to $3 billion of Firstmac’s loans.
Australian securitisation markets are stagnating, with issuance down to $10 billion from $17 billion at this stage last year, according to the AFR. This can in part be attributed to reduced appetite from the banks as investors in AAA rated mortgage bonds.
Firstmac completed a securitisation issue in May this year, raising $500 million. It is the only securitisation issue the non-bank has completed this year.
