Australian structured finance issuance is likely to taper in 2023. Growing funding costs and slowing lending volumes will require agility and adaptation by structured finance issuers in the year ahead. Economies are recalibrating in response to ongoing interest rate rises, and structured finance issuers have had to quickly adapt to sharp increases in funding costs. This comes amid strong lending competition and an expected deterioration in collateral performance, though this is yet to meaningfully surface in most transactions. 2023 offers little reprieve. Further monetary policy tightening awaits, and multiple interest rate rises will start to bite. Nonbank issuers have been at the epicenter of these trials, balancing steeply widening spreads and strong lending competition. Issuers have become adept at navigating volatile funding conditions by nimbly altering plans and funding programs as conditions change.