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.
The corporate fund has announced it is seeking a suitable merger partner as the number of corporate super funds in Australia continues to dwindle.
Australia’s second-largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
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