Banks may have to look for a wider range of investors for the junior tranche of mortgage-backed and asset-backed securities if the Australian Prudential Regulation Authority proceeds with plans outlined yesterday to re-fashion the regulations that apply to this form of funding.
APRA's executive general manager, research and statistics, Charles Littrell, outlined the regulator's approach to a prudential reform of securitisation yesterday. This will be spelled out in detail in a consultation paper to be issued in the New Year.
Littrell proposed that asset-backed securities...
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