Australian RMBS market fundamentals are not too far off the mark when compared to the story in Europe, which could be making European investors more comfortable with buying these deals.

"Margins have come in quite a lot for Australian RMBS - margins over Libor have come in from to seven to 10 basis points from 15 to 18 basis points," said one market source. "And investor's appetite has grown to take larger pieces in some of these issues with many of them oversubscribing. These deals start off with 1 billion ($1.3 billion) but they can potentially grow larger, based on the support that they have been getting."

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