The overseas appetite for Australian residential mortgage-backed securities (RMBS) should keep compressing spreads in the sector, according to a report by analysts at Bank of America Merrill Lynch.

One of the strengths of the sector is the lack of concerns afflicting the Eurozone countries, the analysts said. They added that international investors will help bring total issuance of Australian RMBS to around A$20 billion ($20.8 billion) this year.

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