Recently there have been several AFR articles commenting about “UK investors dump Aussie mortgage bonds in cash scramble” and Gryphon has been asked about possible implications for GCI. Does the selling imply any credit issues with AU RMBS? In our view it does not. This is an external market factor unrelated to fundamental mortgage credit so there are no credit alarm bells in the Australian RMBS & ABS market. Indeed, last month S&P commented that the arrears of Australian borrowers has made “new post GFC lows”.