The non-bank lender has said its largest securitisation to date drew on heavy demand and marked a key funding milestone.
Liberty Financial has priced a $2 billion residential mortgage-backed securities (RMBS) transaction, in what the non-bank describes as its biggest capital market deal since it began issuing to investors in 1999.
The Liberty Series 2026-1 RMBS is backed by a pool of Australian home loans and represents the group’s 56th term securitisation and 102nd capital markets transaction.
The deal was launched at $1 billion, but was then upsized to $2 billion following strong demand across all offered tranches, highlighting the depth of appetite for prime and non-prime mortgage risk from a well-established issuer.
Largest RMBS yet, fully sold
The transaction comprises $2 billion of notes rated by Moody’s Investors Service and Fitch Ratings.
The capital structure features a $600 million A1a tranche with an expected life of about 0.4 years priced at 70 basis points over one‑month BBSW, $1.1 billion of A1b notes with a 2.6‑year weighted average life at 100 bps over BBSW, and $216 million of A2 notes with a 3.2‑year life at 115 bps over BBSW.
The underlying collateral pool carries a weighted average loan-to-value ratio of 61 per cent and is seasoned at 25 months, suggesting borrowers have meaningful equity and established repayment histories.
Settlement is scheduled for 10 March 2026.
BofA Securities acted as sole arranger and joint lead manager alongside Commonwealth Bank, Deutsche Bank, NAB, SMBC Nikko Capital Markets, and Westpac.
Liberty CFO ‘humbled’ by investor support
Liberty’s chief financial officer, Peter Riedel, said the transaction underlined the group’s role in funding a wide spectrum of borrowers.
“Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs,” he said.
He also framed the record size as the latest step in a long-running securitisation program.
“We are humbled to announce our largest capital markets issue and grateful for the support investors have extended to our business from our very first public term issuance in 1999,” Riedel said.
Liberty also pointed to a “STRONG” servicer rating from Standard & Poor’s across commercial mortgages, prime and non-prime residential mortgages, and auto loans, reinforcing its credentials at a time when securitisation remains a critical source of term funding for Australia’s non-bank sector.
[Related: Liberty Financial reports record originations despite rising discharges]
