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Jp Morgan Overview Australian Housing

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Jp Morgan Overview Australian Housing
An Overview Of Australia 's Housing
Market And Residential
Mortgage-Backed Securities
Primary Credit Analysts:
Vera Chaplin, Melbourne (61) 3-9631-2058; vera_chaplin@standardandpoors.com
Erin Kitson, Melbourne (61) 3-9631-2166; erin_kitson@standardandpoors.com
Kate J Thomson, Melbourne (61) 3-9631-2104; kate_thomson@standardandpoors.com

Table Of Contents
Australian RMBS Outlook
Australian Government Support
Australia 's Economy And Demographic Trends
The Australian Housing Market
The Australian Residential Mortgage Loan Market
The Role of Lenders ' Mortgage Insurance
Housing Loan Product Types
Australian Legal And Regulatory Systems Applicable To RMBS
Key Structural Issues Of Offshore RMBS Issuance
Performance Of Australian RMBS
Appendix 1: Australian Capital Cities Established House Price Index
Related Criteria And Research
Useful Links
WWW.STANDARDANDPOORS.COM/RATINGSDIRECT

AUGUST 27, 2012 1
1003640 | 301691467

An Overview Of Australia 's Housing Market And
Residential Mortgage-Backed Securities
Investors in Australian residential mortgage-backed securities (RMBS) continue to benefit from the strong credit performance of the underlying residential mortgage portfolios. However, there is only muted growth in new RMBS issuance activity where real-money investors, including limited foreign investors, are gradually re-emerging. Until quite recently, the Australian government 's partake in Australian RMBS has been heavily relied on to underpin the utility of
Australian securitization as a source of funding for mortgage originators--who themselves are experiencing a reduction in demand for credit.
Any sustained increase in issuance is dependent on the renewed confidence of offshore investors, who held close to two-thirds of Australian RMBS when the total outstanding RMBS were at their peak in 2007. Some of those investors have exited the market and are not likely to re-emerge, while others are focusing on managing their existing


Links: WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 27, 2012 61 WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 27, 2012 62
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