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Westpac prices RMBS

by Staff Reporter7 minute read
The Adviser

Westpac has successfully priced $2 billion of residential mortgage backed securities last Friday.

The pricing represents the first issue by a major lender in a domestic market since the onset of the global financial crisis in May 2007.

With liquidity remaining a major concern, the move by Westpac bodes well for other lenders that plan to go to market in the new year.

According to an article in Dow Jones, the $2 billion RMBS is double what the major bank had originally planned and signals a return of confidence to Australian securitisation market.

So far this year smaller or regional banks in Australia have raised over $3.0 billion through RMBS sales without government assistance.

The notes were priced at 1.3 percentage points over the swap rate and more than 10,000 mortgages were bundled into the deal.

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