Big Four set sights on RMBS market
By
Tim Neary
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20/01/2010 12:00:00 AM
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The return of the majors to the local securitisation markets will provide a boost as it continues to recover from the effects of the GFC.
Westpac and the CBA are likely to be the biggest users of RMBS in the period ahead, according to a report in AFR.
Both need to raise as much as $45 billion a year in funding.
The Big Four had been absent from the securitisation market since mid-2007 until Westpac sold $2 billion of mortgage backed bonds last December.
PIMCO head of Australian portfolio management, Robert Mead said that as much as 10% - or $15 billion - of the funding task facing the local banking sector could be in the form of RMBS.
AMP is expected to price the first deal of the year on Friday - a $543.5 million residential mortgage-backed bond issue.
More of the same is expected from regional bank issuers such as ME Bank and BoQ.
Of the majors NAB is another candidate likely to draw on the market, while ANZ has traditionally sold the least amount of mortgage-backed bonds.
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