POLL-Australia's mortgage-backed bond market to stay moribund
29/01/09 09:42 AM
Australia's
asset back bond market is likely to stay all but
dead this year, according to a Reuters poll of
industry insiders, though corporate issuance should
be supported by an expanding government guarantee
programme.
While opinions diverged widely on issuance for some bonds, there was bleak consensus on the fate of the moribund market for asset-backed securities.
Not one of 18 respondents expects 2009 issuance to exceed last year's A$11 billion ($7.3 billion), already a pittance compared to the A$57 billion issued in 2007.
While opinions diverged widely on issuance for some bonds, there was bleak consensus on the fate of the moribund market for asset-backed securities.
Not one of 18 respondents expects 2009 issuance to exceed last year's A$11 billion ($7.3 billion), already a pittance compared to the A$57 billion issued in 2007.
"I don't
see Australian asset-backed issuance picking up any
time soon ... it will be the last one to recover
because they are more structured and less liquid,"
said Craig Saalmann, an independent consultant in
capital markets.
These types of bonds, mostly residential mortgage-backed securities, suffered the biggest slump in 2008 and respondents expect issuance of just A$9 billion on average in 2009.
Australia, the world's fourth-largest market of mortgage backed securities, took a beating last year as investors shunned the asset class following the U.S. subprime debacle, putting a number of Australian non-bank mortgage lenders out of business.
Full Story
These types of bonds, mostly residential mortgage-backed securities, suffered the biggest slump in 2008 and respondents expect issuance of just A$9 billion on average in 2009.
Australia, the world's fourth-largest market of mortgage backed securities, took a beating last year as investors shunned the asset class following the U.S. subprime debacle, putting a number of Australian non-bank mortgage lenders out of business.
Full Story