Moody's: Australian covered bond credit quality robust despite housing market risks

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.