Non-bank lender La Trobe Financial has completed a $1.5 billion residential mortgage-backed securities (RMBS) transaction, the largest in its history, the Melbourne-based firm announced.
The issue was upsized from $1 billion on strong demand, with international investors taking nearly 60% of the notes. The highest-rated notes went to three major banks from Japan, the UK, and Australia.
“This transaction attracted strong support from key investors, both locally and offshore,” said treasurer Paul Brown.
Securitisation demand matters for brokers because it funds non-bank lending. In its October 2026 Financial Stability Review, the Reserve Bank of Australia (RBA) said strong demand for Australian securitised assets had supported funding conditions for many non-bank lenders and helped keep credit available.
The lender says it applies the same credit standards in every market. It argues this gives brokers and borrowers a clear idea of which loans it will fund regardless of conditions.
Its FY2026 figures show that selectivity: the firm reviewed $28.7 billion of lending opportunities and settled about $15 billion. Assets under management reached $27 billion, up from $22 billion at the end of 2025.
Tougher conditions arrived this week. On 3 November, the RBA raised the cash rate by 25 basis points to 4.85%, noting that the economy is slowing and housing prices have fallen significantly.
Chief executive Chris Andrews said the firm’s approach was built for periods like this.
“We have seen periods of market stress before, and we will see them again,” he said. “There is no quick fix. There is only discipline and patience to build quality into a portfolio long before it is needed.”
The transaction is La Trobe Financial’s fourth RMBS issue of 2026. It takes the year’s issuance to $5 billion and its total since 2014 to more than $22 billion. It adds to a busy year for non-bank securitisation: ColCap set a sector record with a $3 billion RMBS, as Australian Broker reported in its analysis of the non-bank RMBS arms race.
The deal comes days after Canadian pension fund OMERS, which has C$151.5 billion in net assets, agreed to buy an indirect minority interest from Brookfield, subject to regulatory approval. Brookfield has owned the business since 2022 and remains the majority shareholder. Abu Dhabi-based Axight became a minority shareholder in April 2026.
“We don’t reach or stretch for rates that the portfolio can’t support,” Andrews said of the investor returns the firm offers.
La Trobe Financial says borrowers and its more than 130,000 investors won’t see any change, with the same management team and strategy in place.
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