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.

Securitisation shows signs of life

Staff Reporter 1 minute read

The securitisation markets are beginning to thaw, according to the Reserve Bank of Australia’s assistant governor Guy Debelle.

Mr Debelle said the recent sizeable residential mortgage backed securities (RMBS) issues made by second tier lenders including ME Bank, Bendigo and Adelaide, AMP and the Bank of Queensland, suggest the securitisation market is beginning to show signs of life.

“The spreads on the recent RMBS issues are only a bit higher than those on the recent unguaranteed issues by the major banks of equivalent maturity, and the gap is narrowing,” Mr Debelle said.

“[This is particularly the case] for the regional banks (which pay higher spreads on their debt issues) and non-bank lenders which had both previously depended more on this source of funding,” he said.

According to Mr Debelle, the positivity in the market has come about because the stock of RMBS on issue has declined quite significantly over the past two years reflecting the lack of issuance and the amortisation of the existing issues.

“So investors have holes in their RMBS portfolios to fill,” he said.

Securitisation shows signs of life
default
TheAdviser logo
default

 

more from the adviser
WLTH team Neolender CEO reveals broker plans

The co-founder and CEO of new mortgage lender WLTH has revealed i...

tech tool data Business loans to be included in CDR from 1 Nov

The ACCC has revealed examples of the types of business loans tha...

clock Lenders’ turnaround times slowest in three years

The time it takes from loan submission to approval surpassed 25 d...

FROM THE WEB