Jon Millin, executive director for fixed interest at Challenger Financial Services Group, said superannuation funds could fill a gap in the medium-term funding market.
Speaking at SuperRatings Day of Confrontation conference, Millin said the 5-10 year loan market cost banks more to hold financing beyond the traditional 3-5 year tenures.
Companies are over-reliant on short-term bank funding arrangements, while the local bond market has not matured in light of a decline in equities, according to Millin.
"How can it be possible that Australian investment-grade companies can't get five-year debt funding?" he said.
Millin said super funds could use floating notes and senior secured notes, that were traditionally used in leveraged buyout financing arrangements, to access the medium-term loan market.
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A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
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