Part of the reason for this is that the wide basis swap has added to the hedging costs of offshore issues making them less economic, compared with domestic issues. Conclusion In conclusion, I have aimed to provide a recap of the state of play in the Australian RMBS market.
The market is slowly returning to life and I believe it will again play a useful role in the provision of credit in Australia. But I do not see it returning to its pre-crisis share of the market any time soon. I look forward to discussing the policy issues surrounding the market with my fellow panel members. 8  BIS Review 160/2010