Quote Originally Posted by Enumerate View Post
NZF have announced a series of Residential Mortgage Backed Securities - each issued with a S&P credit rating and mortgage insurance.

I think this is a very good development. Further, I think this market could develop a nice niche for NZF as the packager and enabler of direct NZ investment into NZ mortgages. There is life (and brains) in the NZ Finance sector! Perhaps those interested in the security of NZ residential property will now be tempted by a financial instrument that collateralises this debt, directly. The Aussie banks have been making out like bandits in this sector - nice to have the opportunity to have a piece of this market ...
Hi Enumerate,

I haven't got my head around these, and it appears others are confused too:

http://www.nbr.co.nz/article/nzf-gro...urities-123631

What would I actually be purchasing? Are they loans to NZF that are secured by the mortgage charges over properties?

Thanks,

Alan.