Bluestone is set to brave the capital markets in what may be the first major RMBS deals of 2008, The Australian Financial Review reported today.
Founder of the non-conforming lender Alistair Jeffery said Bluestone is hoping to issue two small deals in the next few weeks.
“It takes a brave originator to make loans not knowing what the cost of funding is,” Mr Jeffery said.
The deals are intended to be the first of three or four deals; Bluestone is looking to raise $750-$800 million through securitisation over the year.
To increase the appeal of its mortgage-backed securities, the lender is lowering its loan book’s level of risk.
The maximum LVR has been reduced to 90 from 96 per cent while the proportion of mortgages with a LVR of more than 80 per cent have been cut from 40 to 20-25 per cent of total loans.
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