Australia Housing Slump Isn't Worrying Mortgage Bond Buyers
- Perpetual is adding senior top-rated RMBS in Australia
- Strong jobs, low rates help keep arrears in check, Realm says
Photographer: Brendon Thorne/Bloomberg
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Australia’s worst property market slump in a generation has the central bank and government worried. But even amid fears that tumbling prices may derail the economy, the nation’s mortgage bonds still look attractive to some of the biggest buyers.
Realm Investment House, a top-performing credit fund based in Melbourne, says an uptick in arrears is no reason to panic. The reason? Strong employment and low interest rates are keeping borrowers above water.