RESEARCH
RESIDENTIAL Mortgage-Backed Securities (RMBS) arrears performance against the current cycle of interest rate hikes is still tracking below pre-pandemic levels...
The findings, released as part of a new report, Emerging Opportunities: An in-depth assessment of Whole Loan Sales in Australia, highlight that...
The data is derived from over $420 billion in authorised RMBS, which constitutes more than 20% of the Australian mortgage market...
Perpetual Corporate Trust CEO, Richard McCarthy said the recent surge in the cash rate, which through to this week has seen the Reserve Bank raise...
“Despite the negative sentiment, analysis of the RMBS market from our data warehouse shows that arrears performance across the RMBS sector has been...
“The recent rise in 90-plus DPD arrears needs to be taken in the context of coming from an extremely low base, where arrears had dropped more than...
A comparison of banks versus non-banks shows that non-bank 90-plus DPD arrears has increased from 0.31% to 0.76%, while for banks it has increased from...
“Resilience in the non-bank sector was evident given that only 4% of non-bank loans are fixed rate, meaning that the majority of their customers had already...
Additional RMBS data points that highlight the performance of the market are loan-to-value ratios (LVR). Current loans with an LVR above 80% represent only...
The report also detailed the results of conversations with 17 bank and non-bank participants, as well as global and domestic investors to gauge their perception of...
“Whole Loan Sales have been a feature in the European and US market as an alternative funding model but is not a common funding structure here in Australia,”...
“However, given the relative strength and resilience of Australia’s housing market, which is supported by the RMBS data released as part of the report...