NAB unable to fully profile mortgage pool

National Australia Bank late last week began marketing a mortgage-backed bond through which the bank will refinance $1.5 billion in residential home loans in Australia. NAB has made infrequent use of securitisation as a wholesale finance and capital management option over the years, though the bank did foreshadow at its results briefing last week that it would do so more often. Standard & Poor's, in their pre-sale report, said that they assumed that 25 per cent of the bank's mortgage customers were self-employed, and that they also assumed that 10 per cent of customers were first home buyers. Presumably S&P asked for this data from NAB, and presumably NAB didn't have the records.

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