These RMBS are mainly for the funding of small lenders. The quality of those RMBS should be very poor. I know from some of my friends that they got their home loans with loan-to-value ratio of 100% and they just needed to pay an extra of around 9k for the so-called loan insurance, which again significantly added to their loan burdens. One of my friends told me that even she did not have a job and regular income, she still got her home loan for her first house.
If the Australian unemployment rate rises significantly the next few years, the same thing that has happened in real estate markets of the US and the EU countries will also happen here in Australia.
