The Australian residential mortgage-backed securities market, the world’s fourth largest, has improved to the point that it is significantly less dependent on the government to prop it up. Rob Nicholl, ceo of the Australian Office of Financial Management, said that his office is currently supporting only 17% of the deals, compared with 78% in early 2009. Nicholl said the AOFM’s role is diminishing and that there have been some deals that have closed this year without its support.

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