NZ Mkt For Non-Conforming Mortgage Bonds Comes Of Age

Thursday 24 June 2004

The securitization of prime mortgages into bonds is well established in New Zealand, and now the sector for non-conforming mortgages is starting to see similar levels of growth, market participants say.

By The Landlord

Non-conforming mortgages are those that don't have the high level of documentation and income history which make prime mortgages so attractive for investors.

The market for non-conforming mortgage-backed bonds has tightened in the past eight months with a contraction in the spread at which the AAA tranche of floating-rate non-conforming mortgage-backed securities trades over the three-month bank bill rate.

Last week, Sapphire Securities, which securitizes non-conforming mortgages originated by Bluestone New Zealand, became the first issuer of bonds backed by non-conforming mortgages originated in New Zealand.


Read More - Opens in a new window
Commenting is closed

Property News

ComCom warning for property trader

A property trader, who has attracted unfavourable media attention in recent years, has received a formal warning from the Commerce Commission.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

Demand challenges for commercial sector

Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.

Site by PHP Developer