Wholesale funding is the plumbing behind non-bank business lending. When it runs freely and cheaply, that pressure eventually reaches the borrower. Liberty's latest deal is a clear reading on that gauge.
As Australian Broker reported, Liberty's Series 2026-1 SME transaction was upsized by 67% on investor demand, from a $600 million launch to a final $1 billion. It is the lender's 88th term securitisation and 15th backed by SME loans, taking its total SME issuance to $8.8 billion. Settlement is scheduled for 10 September.
What the pricing tells us
The two senior tranches were both rated Aaa(sf) by Moody's. The $650 million Class A1 notes priced at 115 basis points over one-month BBSW; the $224 million Class A2 notes priced at 130 basis points. Those are tight margins for senior paper, and tight funding costs are the raw material of competitive lending. The underlying pool carries a weighted average loan-to-value ratio of 62% and 29 months of seasoning, a seasoned, conservatively geared book, which helps explain the reception.
Why it matters for SME borrowers
The article points to the RBA's February 2026 Bulletin, which found non-banks' share of business lending has grown since 2022, particularly in smaller SME loans, partly because banks face reduced APRA capital requirements. A deal that clears at 67% above launch size confirms investors are still willing to fund that growth.
For a business owner, none of this is a rate you can ring up and claim. It is a signal about supply. When one large non-bank can raise a billion dollars of SME-backed funding at senior margins in the low-100s over BBSW, the sector has room to keep competing on price and availability. That is context for your next conversation, not a quote.
General information only.