Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Positive outlook for RMBS: Moody

Staff Reporter 3 minute read

Australia’s RMBS market is not in danger of being downgraded, a report from the credit ratings agency Moody’s has found.

According to Moody’s the RMBS market is valued at more than $100 billion, almost all of which is comprised of prime deals.

“Despite a long term trend of increased delinquencies, ratings are anticipated to remain stable in the absence of mortgage insurer downgrades, Moody's vice president and senior analyst Arthur Karabatsos said.

According to Mr Karabatsos, the greatest risk to the RMBS market would come from the collapse of a non-bank lender.

Advertisement
Advertisement

“Since the credit crisis, non-bank lenders have been facing difficulties accessing new funds via the term market which in itself brings into question the long term sustainability of some of these entities given high dependency on RMBS,” Mr Karabatsos said.

In September last year, the federal government stepped in with a support package for the RMBS market, but this is all but spent, prompting concerns the pool will soon dry out.

Suncorp and Greater Building Society were mandated last week as the next recipients for funding, leaving just one more selection round before draining the $8 billion pool.

Positive outlook for RMBS: Moody
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

PROMOTED CONTENT


default

 

more from the adviser
Renee blethyn NextGen.Net appoints head of broker

NextGen.Net has appointed its inaugural national head of broker ...

BBS Summit 2021 ta Better Business Summit and Awards Sydney postponed

Due to the ongoing COVID-19 resurgence in Sydney, the NSW leg of ...

Andrew Moulds Darren Smith ta Lend adds FleetPartners to platform

Lend has integrated vehicle fleet leasing and fleet management pr...