Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The Reserve Bank of New Zealand published the results of its consultation on the proposal to vary the capital risk weighting of investment versus owner occupied loans. Stakeholders are invited to provide feedback on the proposed wording changes to the Reserve Bank’s capital adequacy requirements by 19 June 2015, with a view to implemention by … Continue reading “RBNZ Moves Closer To Changing Capital Rules For Investment Loans”
The ABS released their latest statistics on the asset and liabilities of Australian securitiers to March 2015. We saw a rise in mortgage back securitisation, and a rise in issuance to Australian investors. At 31 March 2015, total assets of Australian securitisers were $140.0b, up $3.5b (2.6%) on 31 December 2014. During the March quarter … Continue reading “Securitisation Of Mortgages On The Rise”
The Property Imperative, Fourth Edition, published April 2015 is available free on request. This report which summarises the key findings for our research into one easy to read publication. We continue to explore some of the factors in play in the Australian residential property market by looking at the activities of different household groups using … Continue reading “Latest Edition Of The Property Imperative Released Today”
Housing is, no surprise, an issue in the NSW election, with Baird promising to facilitate a small number of extra homes (20,000 over 4 years) and Labor talking about deferring stamp duty for first time buyers. Here is the thing. DFA modelling for NSW indicates we need an additional 150,000 homes in and around Sydney, … Continue reading “It’s The Supply Side Stupid!”
The ABS today released the data for Australian Securitisers to December 2014. We see two interesting points, first the value of mortgages being securitised has risen (up 4.8%), and second, a greater share are being purchased by Australian investors (all but 7.2%). We discussed recently the rise on securitisation, and the implications. We know the … Continue reading “Mortgage Securitisation On The Rise”
SocietyOne, Australia’s first and largest Peer-to-Peer (P2P) lender has announced the successful completion of a Series B capital raise with a consortium of eminent Australian investors, made up of Consolidated Press Holdings (CPH), News Corp Australia and Australian Capital Equity. The consortium will acquire 25 per cent of the business initially. Matt Symons, Chief Executive … Continue reading “Local P2P On The Up”
Today, in a speech by Chris Aylmer, Head of Domestic Markets Department, RBA, we got an interesting summary of recent developments in the market. This is important, because as at June, the Bank held about $25 billion of these assets under repo as part of their liquidity management operations. In addition, at the same forum, … Continue reading “Australian Securitisation Under The Microscope”
Luci Ellis, Head of Financial Stability Department spoke to the Australian Housing and Urban Research Institute (AHURI) Panel Roundtable. You can hear her remarks, and a transcript is promised later. My notes follow. Cross country comparisons on housing markets are important, but sometimes comparisons need to be used with care, e.g. specific issues like overbuilding … Continue reading “House Prices Match Income Growth – RBA”
The RBA published the notes from their last meeting today. The theme was similar to previous ones, “Members considered that the most prudent course was likely to be a period of stability in interest rates,” but in the variations, there was a sub-text relating to property prices. I have extracted just those paragraphs: Members noted … Continue reading “RBA And Property Speculation”
The ABS published their data on Australian Securitisers to June 2014 today. At 30 June 2014, total assets of Australian Securitisers were $131.3b, up $2.5b (2.0%) on 31 March 2014. Still below below the pre-GFC peak of more than $250,000 million. During the June quarter 2014, the rise in total assets was due to an … Continue reading “Latest On Australian Securitisers”