The first Investor Community Meeting was held on 29 February 2016 in Perpetual’s Sydney office.
A range of subjects were discussed including the Community’s structure, goals and issues. The key theme of discussion was the difficulty in accessing data under the new reporting standards. A summary of the topics discussed is provided below.
Key Discussion Points and Investor Commentary
- Challenges in accessing data under the new standards
- Data availability has worsened since the RBA standards were introduced.
- The ASF confidentiality agreement is too one-sided and has not been signed by any large institutions.
- The ASF due diligence checklist is impractical and cannot be completed by many investors.
- Comprehensiveness of standard data set
- There are key fields missing from the standardised reporting which were previously available to investors.
- Redaction of data outside the RBA guidance significantly reduces the usefulness of data and comparability between issuers.
- The evolving investor base in Australian securitisation
- Concern was raised that without access to data the Australian securitisation market is likely to shrink as domestic real money investors will not continue to invest and new offshore investors will not participate without access to data.
- Transition to the RBA standard reporting
- Investors expressed frustration that the transition to RBA reporting standards did not include an acceptable transition period with old and new formats reported in parallel.
Transition to RBA Data Standards and the Impact to ABSPerpetual
- Reliability and consistency of data
- Consistency and reliability of reporting on ABSPerpetual has improved since the RBA standards have come into effect. However, it was noted that there are still inconsistencies in interpretation of certain standards by individual issuers, leaving room for further improvement.
- Pool reporting
- Due to the change in source data, pool reporting has not been published on ABSPerpetual since July 2015.
- Frustration from investors on communication of reports not being available post implementation of RBA data format.
- Pool reporting remains in high demand with investors and intermediaries.
- Perpetual has developed a new pool reporting suite to meet investors’ information needs which became available in 2016.
- Perpetual agreed to notify ABSPerpetual users of reports that are being made available.
- Due to the change in source data, periodic CPR has not been published on ABSPerpetual since July 2015.
- CPR remains in high demand with investors, who are very supportive of Perpetual’s efforts to agree a standard approach with the ASF and eagerly await the publication of CPR in the coming April 2016 ABSPerpetual release.
- Report format
- Investors have requested a more user-friendly report extract format. Perpetual will be engaging with ABSPerpetual users to work towards a more functional format.
- Availability of non- repo eligible deals
- Investors would like to see ABSPerpetual expand its coverage to non-repo eligible deals.
- Perpetual intends to investigate options to expand its coverage to non-repo deals in 2016.
ABSPerpetual Investor Community
- Investors were in agreement that they would meet on a quarterly basis to discuss common issues and collaborate on future developments in the Australian securitisation industry.
- The group agreed that attendance will initially only be open to Australian securitisation investors.
ABSPerpetual aims to support and promote transparent and comparable securitisation in Australia. We will continue to work with investors, issuers, intermediaries and the ASF to support a more efficient market and promote the growth of the industry.
If you are an investor and would like to participate in the next ABSPerpetual Investor Community meeting, contact email@example.com.
This information has been prepared by Perpetual Corporate Trust Limited ABN 99 000 341 533 AFSL/ Australian Credit Licence No. 392673 and The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235150. It is general information only and is intended for wholesale clients only. It is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.