Yesterday (Tuesday, 8th of September 2009) Australia’s ME Bank (Members Equity Bank) initiated a A$276 million residential mortgage-backed securities (RMBS) bond sale. This is a significant and important transaction within Australian and international credit markets because
..it represents the first public securitisation to occur without government intervention since September 2008.
This is a very positive sign that the residential backed securities market is starting to flow again. It is especially encouraging to see such a transaction occurring in the private market without government provided aid. Perhaps the government aid has therefore been successful in reducing the severity of the current global financial crisis (GFC).
ME Bank’s A$276 million transaction in residential mortgage-backed securities was also reported in:
- Wall Street Journal
- insto – Australian Financial Markets
- Australian Financial Review (subscription required)
