Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

ME Bank to break into RMBS market

Staff Reporter 4 minute read

ME Bank is set to become the first lender to re-enter the residential mortgage backed securities market without government support.

According to a report in today's The Australian Financial Review, the bank, formerly known as Members Equity, is expected to issue $200 million to $300 million of AAA rated RMBS at about 175 basis points over the swap rate under the Maxis Securitisation Fund.

The issue will be one of the first public RMBS issues globally over the past year and is a sign that the securitisation market might be improving after almost $8 billion of Australian government investment.

The Australia Office of Financial Management (AOFM), which is in charge of the government’s support program, has invested $7.4 billion as a cornerstone investor across 17 mandates since the program’s inception in September last year.


Australian Securitisation Forum deputy chairman Patrick Tuttle told Mortgage Business if the deal is real and above board it is a very encouraging sign for the industry which has been relying on government support to date.

“If the deal goes ahead it will be the first sold to real money investors, without AOFM support, since the end of 2007,” Mr Tuttle said.

“This is what the government has been waiting for, signs of life in the market. That said, I do not think the work of the government is done. If the AOFM can provide a liquidity facility it will provide further encouragement for investors to come back to the market.”

ME Bank to break into RMBS market
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.




more from the adviser
uptick graph Non-majors and non-banks continue to dominate: Broker Pulse

A greater proportion of brokers are sending their clients to non-...

construction equipment ta Demand for excavators up 191% YOY: CBA

The major bank’s data has revealed a jump in asset finance grow...

mortgage money house Hot Property: The biggest property headlines from the week 7-11 June

The weekly round-up of the biggest news stories from across Momen...