Lead by following

18 Apr 2011

Australian structured finance bankers are celebrating after the government committed an extra A$4bn to support residential mortgage-backed securitisation. But rather than increase the market’s reliance on state help, the government should invest wisely and wean issuers off a dangerous addiction to taxpayers’ money.

Australian treasurer Wayne Swan assigned an additional A$4bn ($4.21bn) to the Australian Office of Financial Management on April 8 after announcing the windfall in his December banking reforms. The AOFM has been given A$20bn to invest in RMBS since November 2008 (including the latest hand-out), and now has ...

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