Advertisement
Powered by MOMENTUM MEDIA
lawyers weekly logo
Growth

Lack of liquidity to continue

3 minute read
The Adviser

Liquidity will remain a challenge for Australian lenders with securitisation markets showing little signs of recovery in the near future.

Greg Medcraft, chief executive officer of the Australian Securitisation Forum, warned that the market could remain frozen for up to a further two years due to an underlying lack of liquidity, The Australian reported.

According to Mr Medcraft the problem stems from Australia’s dependence on offshore investors to fund the mortgage-backed market.

“Now that those leveraged investors have gone out of business they are actually liquidating their portfolios and dumping them into the Australian market and that overhang is making it even worse,” he told The Australian.

Published: 28-11-08


default

JOIN THE DISCUSSION

You need to be a member to post comments. Become a member for free today!
You have 0 free articles left this month.
Register for a free account to access unlimited free content, or become a PREMIUM MEMBER to enjoy a wide range of benefits