The latest from Moody's on Australia, Headlines via Reuters:
- Australian covered bond credit quality robust despite housing market risks
- Continued robust credit quality of Australia's covered bond programs reflects the sound credit quality of mortgages in cover pools
- Significant price appreciation in core housing markets of Sydney and Melbourne in Australia has led to very high, rising household indebtedness
New regulatory measures introduced in March in Australia to restrict growth in riskier mortgages are credit positive
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Aside from the credit questions this: "very high, rising household indebtedness" is a concern for the RBA insofar as it is weighing on household spending and therefore, perhaps, economic growth.
