La Trobe Financial Capital Markets Trust 2023-2 Reports AUD 190.3 Million Closing Invested Balance for June 2026 Period

Portfolio Composition and Invested Balance Changes in June 2026 Collection Period

As of 30 June 2026, La Trobe Financial’s securitisation trust comprised nine distinct note classes. The opening invested balance for the June collection period was AUD 196,735,329. Scheduled borrower repayments of AUD 6,483,816 during the 30-day period (1–30 June 2026) reduced the closing invested balance to AUD 190,251,513. This decline reflects the amortising nature of the underlying residential mortgage pool, where principal repayments reduce note balances according to the trust’s payment waterfall.

The largest tranche, Class A1L notes (ISIN: AU3FN0076550), decreased from AUD 112,295,194 to AUD 108,612,024 after repayments of AUD 3,683,170. Class B notes (ISIN: AU3FN0076576), the second-largest tranche, declined from AUD 35,476,471 to AUD 34,312,878 following repayments of AUD 1,163,593. Equity tranches, which absorb losses before senior classes, remained fully invested with Equity 1 holding AUD 3,161,925 and Equity 2 maintaining AUD 1,880,000, indicating strong credit support throughout the period.

Interest Rate Environment and Coupon Distributions by Note Class

The BBSW baseline rate on 15 June 2026 was 4.3000%, serving as the reference for floating-rate coupons within the trust. Fixed coupon spreads vary from 5.45% for senior Class A1S notes to 9.00% for subordinated Class D notes, reflecting credit risk levels. Total interest due for the period (15 June–14 July 2026) was AUD 1,191,170, fully paid with no unpaid interest carried forward.

Class A1L notes earned the largest interest payment of AUD 530,864, consistent with their large balance and 5.95% coupon. Class B notes received AUD 215,629; Class C and D notes earned AUD 75,590 and AUD 56,736 respectively. Class E notes, with an invested balance of AUD 4,339,243 and an 8.15% coupon, received AUD 57,490. The Residual Income Unitholder was allocated AUD 182,121, representing the equity return generated by the portfolio. All interest and principal payments are scheduled for 14 July 2026.

Credit Support Levels and EU Securitisation Regulation Compliance

The trust maintains strong credit support across note classes. Class A1L notes have original credit support of 23.5%, increasing to 43.2% currently, indicating significant protection from subordinated tranches. Class A2 notes have original support of 14.5% and current support of 33.3%, while Class B notes hold original support of 6.7% and current support of 15.4%. These rising support levels result from the amortising pool structure where principal repayments reduce senior note balances first.

La Trobe Financial Capital Markets Trust 2023-2 operates as an Australian registered managed investment scheme structured to comply with European securitisation regulations for cross-border investors. The trust manager confirms retention of at least 5% of the closing invested balance (approximately AUD 9.5 million) as required by Article 6(1) of the EU Securitisation Regulation, aligning interests between the manager and investors. The trust’s initial distribution period closed on 14 June 2023, making the June 2026 period roughly three years into its lifecycle.

Invested Balance and Bond Factor Metrics by Tranche

Invested balance factors (bond factors) track principal recovery relative to original issuance. Senior Classes A1L and A2 show factors of 28.1%, indicating 71.9% of original principal repaid. Subordinated Classes B, C, and D have factors of 58.8%, meaning 41.2% repaid. Class E notes have a factor of 52.6%, reflecting slower amortisation compared to other subordinated tranches. Equity 1 holds a factor of 76.7%, while Equity 2 remains at 100%, retaining full original balance. Classes A1S and F show zero invested balances and factors, indicating inactivity or non-issuance.

Mortgage Portfolio Performance and Charge-Off Activity

The update reports no charge-offs or reinstatements during June 2026, indicating a stable mortgage portfolio with no loans becoming non-performing or removed. Charge-offs represent permanent loan losses, while reinstatements indicate loans returning to performing status. The absence of such events suggests maintained credit quality without material deterioration.

La Trobe Financial Group specialises in non-bank residential and commercial lending to Australian borrowers, including those underserved by major banks. The securitisation isolates credit risk from the originator, allowing institutional investors direct participation in a diversified mortgage portfolio. The lack of charge-offs in June 2026 evidences effective underwriting and portfolio monitoring, though full credit risk assessment requires longer-term data.

Investor Contacts and Trust Governance

Key contacts for investor inquiries include Martin Barry, Senior Vice President and CFO (+61 478 184 981, [email protected]); Paul Brown, Director and Treasurer (+61 408 566 523, [email protected]); and Kit Wilson, Executive General Manager Head of Group Portfolio Funding (+61 401 571 539, [email protected]). These executives oversee financial reporting, treasury, and portfolio funding operations.

The determination summary is a formal reporting requirement under securitisation legislation and trust documents. Investors receive this report to verify interest calculations, principal changes, and compliance. Standardised metrics enable ongoing portfolio performance tracking and assessment against risk-return expectations. Availability of senior management contacts highlights accountability to noteholders.

BBSW Rate and Floating-Rate Coupon Calculation

The 15 June 2026 BBSW rate of 4.3000% is the benchmark for floating-rate coupons on eligible notes. BBSW, administered by ASX, reflects Australian banks’ unsecured funding costs. Floating-rate notes reset coupons based on this rate plus fixed spreads. Disclosure of the BBSW fixing ensures transparency and allows independent verification of interest calculations.

Investors benefit from clarity on how BBSW fluctuations affect coupon payments. Rising BBSW increases yields on floating-rate notes; falling rates reduce coupons. The current 4.3000% rate reflects prevailing monetary policy and market conditions, linking noteholder returns to observable benchmarks and reinforcing transparency.

Equity Tranche Performance and Residual Income Distribution

The trust’s two equity tranches, Equity 1 (ISIN: AU3FN0076626) and Equity 2, absorb credit losses before senior or subordinated notes. Equity 1’s balance decreased slightly from AUD 3,177,216 to AUD 3,161,925 after repayments of AUD 15,291, while Equity 2 remained steady at AUD 1,880,000 with no repayments. The Residual Income Unitholder received AUD 182,121, representing net economic returns after senior and subordinated payments and expenses.

Equity tranches align originator and investor interests by retaining first-loss exposure. Credit losses impact equity holders before affecting other classes, incentivizing rigorous underwriting and monitoring. The modest repayments in Equity 1 and none in Equity 2 during June 2026 indicate limited excess cash flow to junior equity, consistent with a securitisation in its early to mid-stage lifecycle prioritising senior repayments.

Investor Guidance and Upcoming Payment Schedule

Investors should note the next scheduled interest and principal payment date is 14 July 2026, covering the interest period from 15 June to 14 July 2026 (29 days). The opening invested balance for this period will be AUD 190,251,513, subject to further repayments during July. The disclosed coupon rates and balances provide a framework for understanding future interest calculations as the trust progresses through its typical 25-30 year lifespan.

The portfolio’s stability in June 2026—with no charge-offs, reinstatements, and full interest payments—offers positive credit risk signals. However, single-period data is only a snapshot; comprehensive credit evaluation requires multi-period loss history, portfolio composition analysis, and benchmarking. Public information did not indicate immediate share price impact. Investors should review the trust deed, offering circular, and historical performance reports with financial advisers before making investment decisions.