Cross-posted from Martin North’s DFA blog.
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 securitised mortgage pools have been securitised by both the banking sector, and non-banking sector. Investors who buy mortgage back securitised paper are of course leveraged into housing at a second order level.
At 31 December 2014, total assets of Australian securitisers were $136.5b, up $4.8b (3.6%) on 30 September 2014.
During the December quarter 2014, the rise in total assets was due to an increase in residential mortgage assets (up $5.2b, 4.9%) and cash and deposits (up $0.3b, 7.1%). This was partially offset by decreases in other loans (down $0.6b, 3.9%).
Residential and non-residential mortgage assets, which accounted for 83.0% of total assets, were $113.3b at 31 December 2014, an increase of $5.2b (4.8%) during the quarter.
At 31 December 2014, total liabilities of Australian securitisers were $136.5b, up $4.8b (3.6%) on 30 September 2014. The rise in total liabilities was due to the increase in long term asset backed securities issued in Australia (up $4.3b, 4.3%) and loans and placements (up $3.0b, 18.4%). This was partially offset by a decrease in short term asset backed securities issued in Australia (down $1.5b, 33.0%) and asset backed securities issued overseas (down $1.1b, 10.4%).
At 31 December 2014, asset backed securities issued overseas as a proportion of total liabilities decreased to 7.2%, down 1.1% on the September quarter 2014 percentage of 8.3%. Asset backed securities issued in Australia as a proportion of total liabilities decreased to 77.5%, down 0.7% on the September quarter 2014 percentage of 78.2%.
Note the ABS says revisions have been made to the original series as a result of improved reporting of survey data. These revisions have impacted the assets and liabilities reported as at 30 September 2014 and 30 June 2014.