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RESIMAC prices RMBS issue

Staff Reporter 3 minute read

By: Jessica Darnbrough

Non-bank lender RESIMAC has priced its Premier Series $250 million residential mortgage-backed securities (RMBS) issue.

Last week, The Adviser reported that the non-bank lender had dived backed into the RMBS market with the announcement of its four tranches issue, which is jointly managed by Barclays Capital, Deutsche Bank and National Australia Bank.

According to a company statement, the deal includes a $226 million 2.4 year triple A rated tranche at 165 basis points over the one month bank bill swap rate, as well as a $17.75 million 4 year triple A rated tranche at 225 basis points over the swap rate.

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The issue pool includes loans with an average loan-to-value ratio of 70 per cent and an average time since issue, or seasoning, of 31 months. The pool includes 70 per cent of low documentation loans, while interest-only loans make up 49 per cent of the portfolio.

RESIMAC said the transaction represents an important development in the Australian securitisation market where there has not been a publicly offered deal with significant low doc loan concentration since the global financial crisis.

“There was pleasing institutional interest in the asset class at marketed levels with investors recognising the quality and yield of the underlying collateral,” a company statement read.

“There was strong support for the transaction with four investors participating in the A tranche and two in the AB and B-1 tranches respectively. The AOFM’s allocation was significantly down-scaled due to institutional demand for the paper.”

RESIMAC has been a beneficiary of the federal government’s RMBS investment programme that has enabled it to continue lending at competitive levels despite market conditions.

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