This article, published by KangaNews, reports on the conversation at the ASF's London investor briefing held on June 13.
It notes that the books of Australian mortgage lenders – and the securitisation and covered-bond structures they use to fund them – are of sufficient quality to withstand growing pressure on loan serviceability as rates continue to rise and cost of living challenges grow. Speakers at the briefing in London noted solid prepayment and serviceability buffers while acknowledging that arrears will inevitably climb.
Nonetheless securitisation market participants say Australian borrowers and lenders are well placed to handle the challenges with speakers suggesting the issues are of deal execution rather than outright liquidity.
Read the full report from KangaNews >