Mortgage bonds fall as cheaper Aussie funding choices beckon

Sydney

HOME-LOAN providers in Australia are selling mortgage bonds at the slowest pace in four years, flocking instead to cheaper debt that doesn't require collateral.

Just A$14.8 billion (S$15.67 billion) of new residential mortgage-backed securities have been issued so far in 2016 by banks and other housing lenders, 36 per cent less than at this stage last year, data compiled by Bloomberg show. At the same time, unsecuritised borrowing by Australia's four biggest banks is running at the fastest pace since 2009.