Reserve Bank of Australia Assistant Governor (Financial Markets) Christopher Kent speech, topic is 'Securitisation and the Housing Market'
Nothing directly on the economy nor his views on monetary policy
Headlines via Reuters, bolding mine:
- demand for home loans has weakened, supply tightened
- non-bank lenders have increased their mortgage lending, notably to investors
- monitoring growth of non-bank lenders for possible "emerging financial stability risks"
- non-banks issuing close to a$4 billion of RMBS per quarter
- stock of abs has risen a$20 bln in past 18 months, driven by offshore demand
- RMBS issuers should consider using cash rate, 3- and 6-mth BBSW as benchmarks
- markets should prepare fall-back provisions in case BBSW, Libor no longer published
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