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Rush of Australian securitized home loans tempts yield-starved Japanese

SYDNEY/TOKYO Australia has become the worlds most active market for securitized home loans, with sales at their highest in a decade as lenders seek to take advantage of surging demand from yield-starved Japanese investors.

Issues of residential mortgage-backed securities (RMBS) total A$67 billion ($50.21 billion), with A$12 billion sold so far this year. Offshore investors have been big buyers, with Japanese to the fore, having previously shown little appetite.

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