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.
