Macquarie Bank to buy local RMBS

Macquarie Bank has established a fund which will purchase mortgage-backed securities indicating renewed optimism for the domestic securitisation market.

The  Debt Market Opportunity Fund, which will purchase investment-grade bundled  Australian mortgages, is currently worth around $1 billion with plans to grow to around $10 billion in the next few years.

Dean Stewart, a divisional director of Macquarie Funds Management, told The Australian, domestic mortgages offered good value and quality compared to overseas offerings and said there had been “some very large investors interested in this strategy”.