Home loan mortgage bonds at slowest pace for four years

Home loan providers in Australia are selling mortgage bonds at the slowest pace in four years.

Its suggested they are seeking cheaper debt that doesn’t require collateral.

Some A$14.8 billion ($11 billion) of new residential mortgage-backed securities have been issued so far in 2016 by banks and other housing lenders, 36 percent less than at this stage last year, data compiled by Bloomberg show.

Mortgage-backed bond issuance by the country’s four biggest banks has halved to A$3.58 billion from A$7.85 billion last year.

Issuance by other banks, building societies and credit unions has also declined to just A$4.12 billion from A$10.4 billion.