The Reserve Bank of Australia’s assistant governor Guy Debelle has given an optimistic assessment of the future of the mortgage-backed securities market.
At a panel discussion hosted by the Mortgage and Financial Association of Australia in Melbourne yesterday, Mr Debelle said the securitisation market was improving ‘month by month’.
While the federal government’s $8 billion support package for the securitisation market has nearly all been spent on AAA rated RMBS, Mr Debelle said there has never been an issue with mortgage backed securities in this country.
“At some point, people are going to want to buy more, and every day we are getting closer to that point,” he said.
“What happened in the last half of last year was unprecedented. There was a synchronised collapse. But the economy is looking better than a few months ago.
“The China story has really helped. The local economy has also been helped both on the monetary and fiscal side by a lot of stimulus.”