The specialist funding of warehouses is particularly developed in Australia, home to one of the world’s most active securitisation markets with about $125 billion of residential mortgage-backed securities on issue. As a key focus area for us, mezzanine warehouse funding provides an attractive opportunity for yield.

Chief Investment Officer Bob Sahota says: Warehouse mezzanine funding is more lucrative compared with the returns the very same assets pay when they are eventually sold off, or “termed out” in the public asset-backed markets. Private warehouses are a lot more attractive to us because there aren’t many players.

Read more on The Australian Financial Review