In terms of funding sources, securitised lending was an alternative source of financing to deposits collected from the public: banks obtained the funds for new lending through bonds issued by securitisation vehicles.
Thus, if they experience increased difficulty in accessing US funding markets, this is resolved by sourcing Australian dollar liquidity, including in stressed circumstances from the Reserve Bank,12 rather than trying to source liquidity in a foreign currency. The swaps are generally of the same maturity as the funding, so there is no maturity mismatch.