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Challenger prices $824m RMBS deal

by Staff Reporter7 minute read

The non-bank sector has received a further liquidity injection after Challenger Mortgage Management successfully raised $824.1 million on the back of the government $8 billion mortgage funding boost.

The top-rated tranche of the sale was priced at 135 basis points over the one month bank bill swap rate with $324 million delivered by investors and $500 million by the government.

Andrew Twyford, Challenger general manager of securitisation and treasury mortgage management, told Mortgage Business the deal would further strengthen Challenger’s funding capabilities.

“The key outcome is that it provides a significant slice of liquidity for us to continue funding our partners,” he said.

Mr Twyford said the government’s decision to invest in the mortgage market had been “very helpful” and he said they would hope and encourage the government to continue the program moving forward.

The deal follows government-supported RMBS deals from FirstMac and Members Equity in November which totalled $1.2 billion.

Resimac, which has been selected as the next beneficiary of the scheme, is expected to seal a deal next week.

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