Prime RMBS tranches immune to agency downgrades, says RBA


Falling home prices in the US and turmoil surrounding the financial viability of US government-sponsored entities Fannie Mae and Freddie Mac, which buy mortgage assets in the secondary market, have yet to cause major concerns for investors in Australian residential mortgage-backed securities (RMBSs).

One reason for this is that almost all prime RMBSs issued in Australia are covered by lenders' mortgage insurance (LMI). However, earnings issues at the parents of the two companies that dominate the

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: