Australian Mortgage Bond Sales Are Climbing Despite Housing WarningsBy
New RMBS issuance doubles this year to A$10.5 billion
Housing ‘market is extremely stretched,’ QIC economist says
Investors are lapping up mortgage bonds in Australia even as regulators and credit assessors step up their warnings about risks from the nation’s housing market.
New residential mortgage-backed securities issuance has more than doubled so far this year to A$10.5 billion ($7.8 billion) from A$5.1 billion a year earlier, data compiled by Bloomberg show. More than half of the issuance has been fueled by non-bank lenders. Those firms have fewer funding options compared with major Australian banks, which have been favoring unsecuritized debt at a time when costs are close to historical lows…
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