Tuesday, 9 April 2013

Step back from CMBS support

...Australia will stop buying mortgage bonds as a revival in the market means the government’s support is no longer needed, according to Treasurer Wayne Swan.
The cost of issuing residential mortgage-backed securities has recovered since the credit freeze in 2008 that prompted the creation of the government’s RMBS program, Swan said in the text of a speech to be delivered today at the Bloomberg Australia Economic Summit in Sydney. Although it doesn’t plan new purchases, the government won’t sell the securities it owns in the near future, he said....
...The Australian Office of Financial Management, which administers the RMBS program, has spent A$15.5 billion of its A$20 billion budget, according to information on its website. The program aimed to spur competition in the nation’s home loan market by helping smaller lenders fund themselves.... (here)

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