Foreign investment to boost competition: FirstMac
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Andrea Cornish
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17/06/2010 1:00:00 AM
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European investors are looking to release a "wall of money" into the Australian mortgage market, says FirstMac's managing director Kim Cannon who is attending the Global ABS 2010 in London.
Cannon says the foreign investors are eyeing up Australian mortgage-backed securities and calling for the AOFM to consider supporting foreign currency transactions to help European investments flow into the country.
There is a wall of money that investors want to release from Europe into Australian mortgages,” Mr Cannon said.
“The cost of swapping from Euros into Australian dollars however is the major limiting factor. The Australian industry attending the forum is trying to devise innovative ways to facilitate European investment at the right price.”
Foreign investment into Australian mortgage-backed securities would help boost competition, which has suffered as a result of the GFC.
According to Cannon, the investors – both from Europe and the US - have enormous respect for the AOFM and its initiatives to support RMBS in Australia.
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