PUMA Series 2025-1 Trust Reports $2 Billion Mortgage Pool Performance for May 2026 Collection Period

PUMA Series 2025-1 Trust Pool Amortisation from $2.41 Billion to $2.01 Billion

The PUMA Series 2025-1 Trust’s residential mortgage pool has amortised materially since its establishment. At issue, the pool comprised 4,503 loans with a total outstanding balance of $2,413,388,137.29. As at the collection period ended 31 May 2026, the pool had reduced to 3,884 loans with a total outstanding balance of $2,007,939,105.44. This represents a reduction of 619 loans and approximately $405 million in pool balance, reflecting a combination of scheduled principal repayments and unscheduled prepayments by borrowers.

The average current loan balance at the reporting date was $516,977.11, down slightly from $535,951.17 at issue, consistent with natural amortisation across the portfolio. The maximum current balance remained capped at $1,500,000.00. These figures indicate the pool is performing broadly in line with standard RMBS amortisation expectations for an Australian prime residential mortgage portfolio, and the company did not disclose any specific guidance regarding the expected rate of future amortisation in the company update.

Zero Cumulative Losses Recorded Across All Monthly Periods Since Trust Inception

One of the most significant credit performance metrics disclosed in the report is the loss and recovery information. Across every reporting period since inception — from the trust’s Issue Date through to 31 May 2026 — cumulative losses on sale have remained at exactly zero dollars. No loan has been sold at a loss, no amount has been recovered from third parties in connection with loss events, and the net loss to the trust stands at nil.

This is a noteworthy outcome for note holders, as it indicates that despite ongoing delinquency activity at the sub-120-day level, no loans have progressed through to a realised loss event within the trust. For investors in Australian RMBS structures, the absence of any credit loss event since inception is a positive indicator of the underlying collateral quality and the serviceability resilience of the borrower pool. The company update did not provide commentary on management’s expectations for future loss performance.

Delinquency Rates Remain Below 0.15% but Show Gradual Rise Through 2026

The delinquency data provided in the report covers the period from the trust’s issue date through to 31 May 2026. In the 30-to-59-day delinquency bucket, the rate stood at 0.07% of the outstanding pool balance as at 31 May 2026, having peaked at 0.09% in the April 2026 period. The 60-to-89-day bucket improved significantly to 0.01% as at 31 May 2026, down from a high of 0.07% recorded in the prior reporting period. The 90-to-119-day bucket registered 0.05% as at 31 May 2026.

Importantly, the greater-than-120-day delinquency bucket has remained at Zero Percent across every single reporting period since trust inception. This means no loan has remained delinquent beyond 120 days without resolution during the life of the trust to date. While the gradual rise in shorter-duration delinquency buckets through the early months of 2026 warrants monitoring, the overall arrears profile remains modest relative to broader Australian RMBS market benchmarks. Investors should note that delinquency data represents a point-in-time snapshot and may fluctuate across subsequent collection periods.

Conditional Prepayment Rate Climbs to 26.91% in April 2026 Period

The conditional prepayment rate (CPR) data reveals a notable trend in borrower behaviour across the life of the PUMA Series 2025-1 Trust. The CPR was recorded at 21.09% for the October 2025 period, the first period following trust establishment. It subsequently rose to 23.85% in November 2025 before moderating to 19.20% in December 2025. The CPR then climbed steadily, reaching 23.63% in January 2026, 23.91% in February 2026, and 22.74% in March 2026.

The most recent available CPR reading — for the April 2026 period — stands at 26.91%, the highest level recorded since the trust’s inception. A higher CPR indicates that a greater proportion of borrowers are voluntarily repaying their mortgages ahead of schedule, whether through lump-sum payments, refinancing, or property sales. Elevated prepayment rates accelerate the return of principal to note holders but can also affect the weighted average life of the securities. The company update did not include management commentary on the factors driving the elevated CPR or expectations for future prepayment speeds.

Weighted Average LVR and Loan Seasoning Reflect an Improving Collateral Profile

The weighted average current loan-to-value ratio (LVR) of the pool has improved from 58.5 at issue to 57.2 as at 31 May 2026. Similarly, the weighted average scheduled LVR moved from 60.0 at issue to 58.7 at the reporting date. A declining weighted average LVR reflects a combination of scheduled principal repayments, voluntary prepayments, and in some cases property value appreciation embedded in the original valuations at origination.

The proportion of loans with a current LVR greater than 80% — a commonly watched threshold for higher-risk lending — has declined from 0.00% at issue to just 0.04% as at 31 May 2026. This remains negligible and is consistent with the trust’s nil LMI (Lender’s Mortgage Insurance) insured percentage, indicating the pool was originated predominantly with LVRs at or below 80%. The weighted average seasoning of the pool has increased from 33 months at issue to 40 months as at 31 May 2026, meaning the loans are, on average, more mature and have passed through a longer repayment history, which is generally associated with reduced early-life Default Risk.

NSW and Victoria Dominate Geographic Concentration at Over 65% of the Pool

The geographic distribution of the mortgage pool shows a significant concentration in Australia’s two most populous states. New South Wales accounted for 36.3% of the pool by balance as at 31 May 2026, up slightly from 35.6% at issue. Victoria represented 28.9% of the pool, broadly unchanged from 28.8% at issue. Queensland was the third-largest state, comprising 19.8% of the pool as at the reporting date compared with 20.3% at issue.

Western Australia accounted for 7.5% of the pool, followed by South Australia at 3.5%, the Australian Capital Territory at 3.1%, Tasmania at 0.7%, and the Northern Territory at 0.1%. A notable shift in the geographic breakdown is the change in the metropolitan versus non-metropolitan split. The metropolitan proportion of the pool declined from 88.3% at issue to 77.2% as at 31 May 2026, while the non-metropolitan proportion increased from 10.9% at issue to 22.0%. This shift warrants monitoring, as non-metropolitan residential property markets can exhibit different Liquidity and price Volatility characteristics compared with major capital city markets.

Owner-Occupied and Principal-and-Interest Loans Remain Dominant in the Portfolio

From an ownership and repayment-type perspective, the pool has remained stable in composition since issue. Owner-occupied loans accounted for 75.3% of the pool by balance as at 31 May 2026, compared with 75.2% at issue. Investment loans comprised the remaining 24.7%, down marginally from 24.8% at issue. The dominance of owner-occupied lending is generally viewed as a positive credit characteristic within Australian RMBS structures, as owner-occupiers have historically demonstrated lower default rates than investment borrowers.

On the repayment type, principal and interest loans increased from 85.5% of the pool at issue to 86.8% as at 31 May 2026. Interest-only loans declined correspondingly from 14.5% to 13.2%. The continued transition toward a higher proportion of principal and interest loans is consistent with regulatory settings in Australia, which have for some time incentivised lenders and borrowers to favour P&I structures. Variable rate loans continued to dominate the pool at 98.5% as at 31 May 2026, compared with 99.0% at issue, with fixed rate loans representing the remaining 1.5%.

Current Balance Distribution Shows Concentration in Mid-to-High Loan Size Segments

The current balance band distribution of the pool as at 31 May 2026 reveals a concentration of loans in the $300,000 to $1 million range, consistent with the demographic and pricing characteristics of Australian metropolitan residential mortgages. Loans above $1 million accounted for 15.6% of the pool as at 31 May 2026, down from 17.5% at issue, suggesting that higher-balance loans have experienced faster relative amortisation or prepayment. The $300,000 to $400,000 band was the largest discrete segment at 13.3%, followed by the $400,000 to $500,000 band at 13.7%.

At the lower end of the distribution, loans below $100,000 accounted for just 0.4% of the pool, and loans between $100,000 and $200,000 comprised 2.3%. These proportions reflect the high prevailing property values in the states where the pool is concentrated, particularly New South Wales and Victoria. The weighted average remaining term to Maturity of the pool as at 31 May 2026 was 313.67 months, compared with 320.74 months at issue, consistent with the passage of approximately seven months of scheduled amortisation and the impact of prepayments on the pool’s maturity profile.

Weighted Average Mortgage Rate Declines from 5.6% at Issue to 6.3% — A Correction in the Data

The company update discloses the weighted average rate of the mortgage pool as 5.6% at issue and 6.3% as at 31 May 2026. Investors and analysts reviewing this data should note that the direction of movement — from a lower rate at issue to a higher rate at the reporting date — may reflect the repricing of variable rate mortgages in the pool over the period since trust establishment, as the pool is approximately 98.5% variable rate as at the reporting date. Variable rate mortgage pools are subject to rate movements that flow through to the weighted average rate of the pool over time.

The specific drivers of this change — including any movements in the underlying cash rate or lender standard variable rates applicable to the portfolio — were not detailed in the company update. Investors in the RMBS note structure should be aware that changes in the weighted average mortgage pool rate can affect excess spread available within the trust structure, which in turn has implications for credit enhancement and the trust’s ability to cover note coupon obligations. The company did not disclose specific excess spread figures or trust Cash Flow projections in this update.

What Investors in PUV Notes Should Monitor in Upcoming Monthly Reports

The PUMA Series 2025-1 Trust collateral report for the collection period ended 31 May 2026 presents a broadly stable and well-performing portfolio. The key metrics investors should track in forthcoming monthly collateral reports include whether the 90-to-119-day delinquency bucket — which rose to 0.05% in May 2026 — continues to increase, and critically, whether any loans migrate into the greater-than-120-day delinquency category. Any entry into that bucket would represent a first for the trust since inception and could signal the beginning of credit loss events if not resolved.

The elevated and rising CPR is also worth watching. At 26.91% in the April 2026 period, the CPR has reached its highest point since trust inception. Sustained high prepayment rates will continue to reduce the pool balance and the number of loans, which concentrates credit exposure on the remaining pool. Investors should also monitor whether the increasing non-metropolitan geographic concentration — which moved from 10.9% to 22.0% — continues to grow, and whether this introduces any additional valuation or Liquidity Risk into the collateral pool over time. The immediate share price impact was not clear from available public information.