Aussies show their backbone

After the collapse in demand for mortgage-backed bonds, bankers have been wondering where the first signs of recovery might appear. In Australia, a few tentative issues offer hope that the rebuilding of the country's local securitisation market may have begun. William Rhode reports

How times change. Six months ago, Australia's carefully nurtured residential mortgage-backed securities (RMBS) market was thriving. Liquidity and volumes were surging on the back of strong international investor demand. Deals, which were in the billions of dollars, were frequently oversubscribed and having to be upsized. Pricing was tight, with yields rarely going beyond the high teens in terms of basis points above the bank base rate.

Then came the US subprime crisis and demand for mortgage

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