Australia’s government must rethink its support for residential mortgage-backed securitisation as real investors return to the asset class. Taxpayer money is still needed, but the state should remember its aim to improve competition in the mortgage market.
Members Equity Bank priced a A$1bn RMBS issue last week with an increased deal that priced at the tightest spread since the financial crisis. Even more significantly, it closed without state investment.
The Australian Office of Financial Management had agreed to support the transaction but stepped aside in