PT  - JOURNAL ARTICLE
AU  - Chris Dalton
TI  - Securitization Down Under Looking Up
AID  - 10.3905/jsf.2011.17.3.059
DP  - 2011 Oct 31
TA  - The Journal of Structured Finance
PG  - 59--65
VI  - 17
IP  - 3
4099  - https://pm-research.com/content/17/3/59.short
4100  - https://pm-research.com/content/17/3/59.full
AB  - The role and significance of securitization in Australia’s financial system is that it provides an element of competition and choice for consumers, particularly home loan borrowers, which defrays to a degree the dominant market presence of the four major banks. The strength of Australia’s prime residential mortgage-backed securities (RMBS) market is underpinned by conservative products, full recourse to the borrower, and non-deductibility of mortgage interest. Current challenges for the Australian securitization market include rebuilding the sustainable base of global investors it had before the financial crisis and changes to the credit rating agencies’ rating criteria. Optimism stems from the central bank’s acceptance of RMBS as security for its secured liquidity facility under Basel III provisions and increased domestic funds’ allocations toward domestic fixed-income securities.TOPICS: MBS and residential mortgage loans, asset-backed securities (ABS)