Mortgage originators are set to rely on the bond market once the federal government’s $8 billion support package runs out, The Australian Financial Review today reported.
According to the report, some mortgage originators are shifting their financing away from a traditional dependence on securitisation towards the bond market, which has coped better with the financial crisis.
Members Equity is said to be considering making the shift from securitisation to the bond market.
The mortgage originator has diversified its funding base away from securitisation since the beginning of the GFC. While much of this effort has been concentrated on boosting customer deposits, Members Equity is also considering other forms of funding, including issuing bonds.
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