In January, S&P Global Ratings published a paper entitled Australian Structured Finance Outlook 2022: Back To The Future. The main points in the S&P paper include:
• all asset classes are likely to remain stable to positive over the year
• new issuance will be strong with the expiration of the RBA Term Funding Facility in 2021
• rising interest rates likely to only impact a very small portion of the borrower base
• macroeconomic environment supports strong credit performance, particularly employment
• property prices likely to moderate but seasoned loans have really benefitted from past strength.
The S&P paper is a strong reinforcement of Gryphon’s own views as we continue to position the portfolio to capitalise on a robust market and strong credit fundamentals in Australia.