Powered by MOMENTUM MEDIA
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.

Freddie Mac equivalent for Australia?

Staff Reporter 1 minute read

The federal government has been called upon to support liquidity in the Australian securities market in order to promote and maintain competition in the housing finance industry.

Joshua Gans of the Melbourne Business School and Christopher Joye of Rismark said in a proposal to the federal government that Australia was in need of a policy solution that would guarantee a minimum level of liquidity in the mortgage-backed securities market.

“Failure to act with a systematic policy response will see the heightened competition that emerged in the mortgage market over the past 10 years significantly dissipate,” they said.

The pair proposed that the government sponsor an enterprise similar to Fannie Mae and Freddie Mac in the US – “AussieMac” – that would leverage the government’s AAA-rating to issue low-cost bonds and acquire high-quality mortgage-backed securities from Australian lenders.

AussieMac, Messrs Gans and Joye said, would provide long-term liquidity to the market, especially during times of market failure and would “restore stability and long-term confidence to both the primary and secondary mortgage markets”.

Advertisement
Advertisement

Published: 27-03-08

Freddie Mac equivalent for Australia?
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
mortgage choice 850 Major brokerage appoints new GM of distribution

Mortgage Choice has announced that Citi’s former head of bankin...

ANZ new still ta ANZ extends business loan terms

The major bank has announced that it will extend the maximum loan...

cash money rolls Credit growth stunted by dive in business lending

Credit growth has waned as a result of a sharp drop-off in busine...

FROM THE WEB