RBNZ seeks liquidity and stability with new mortgage bond standard

RBNZ is seeking feedback on the terms under which it should accept mortgage bonds as collateral The Reserve Bank of New Zealand is planning to introdu

RBNZ is seeking feedback on the terms under which it should accept mortgage bonds as collateral

The Reserve Bank of New Zealand is planning to introduce an enhanced standard for mortgage bonds with the aim of boosting liquidity and activity in the domestic debt market.

In the consultation paper published today (November 17), the RBNZ solicits feedback on the use of mortgage bonds as collateral in its liquidity facilities, and outlines a new standard for the bonds that it terms “residential mortgage obligations”.

RMO is a new format for mortgage bonds which aims to make the securitised bu

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