Indeed, Australian RMBS was often sold first because of its good performance. Graph 3  On top of this, investor demand for new issuance declined both internationally and domestically because of the brand damage to RMBS from the US in particular, where poor lending and servicing practices saw a material deterioration in collateral performance.
The liquidation by the SIVs of their RMBS holdings, combined with the increased aversion to the product from investors because of the brand damage emanating from the US, saw the price in the secondary market decline significantly.