Moody’s: Australian covered bond credit quality robust despite housing market risks

The US ratings agency, Moody’s Investors Service is out with its latest report on the Australian covered bond markets, highlighting the following:

Australian covered bond credit quality robust despite housing market risks

Continued robust credit quality of Australia's covered bond programs reflects the sound credit quality of mortgages in cover pools

Significant price appreciation in core housing markets of Sydney and Melbourne in Australia has led to very high, rising household indebtedness

New regulatory measures introduced in March in Australia to restrict growth in riskier mortgages are credit positive