By: Staff Reporter
Macquarie Bank’s securitisation arm has privately issued RMBS containing $500 million worth of low doc loans, the first such deal since the the global financial crisis hit.
According to a report in The Sydney Morning Herald, the issuance comes on the back of a ramp up in demand from investors for low quality mortgages.
Last week, Macquarie Securitisation sold a $1.2 billion bond with a pool of residential mortages as the underlying asset.
Reports suggest at least 46 per cent of the bond is low doc loans, with the remainder comprising of fully verified income loans.
Division director of Macquarie's debt origination and structuring team, Kevin Lee, said the bond was privately arranged for a group of institutional investors, who have not been named.
"We have not seen public transactions [with] this amount of low doc [loans] for a long time," he said.
"But there are private investors who have effectively said they are happy to take them …
"It is not necessarily reflective of what the broader market will take at this time."
Commercial issuers have sold nearly $5 billion worth of RMBS so far this year, according to Westpac Credit Research, including a $1.1 billion issuance by Bendigo Adelaide Bank and a $650 million issuance by Bankwest last week.