Citi says rising cash rate key concern for Australian non-bank lenders in 2022

Liberty

11/03/2022 03:26

** Citi says a combination of a rising cash rate, a return
to debt markets by the major banks, and  the impact of recent
Russia-Ukraine conflict sees future funding costs emerge as the
key investor concern for Australian non-bank lenders
    ** Brokerage says a rising cash rate to impact borrower
demand as well as funding costs
    ** Citi says with boom in borrower demand and house prices
likely to slow on higher mortgage rates, particularly fixed
rates, presents challenges to Non-Bank Financial Institutions
(NBFIs) in 2022
    ** Industry feedback indicates that NBFI funding markets are
tougher than the bumper conditions experienced during 2021 -
Citi
    ** Brokerage remains "buy" rated on Australian Finance Group
 AFG.AX  and Liberty Financial Group  LFG.AX  

 (Reporting by Arundhati Dutta in Bengaluru)
 ((Arundhati.Dutta@thomsonreuters.com;))