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Non-bank prices non-conforming RMBS

by Staff Reporter11 minute read
The Adviser

Staff Reporter

RESIMAC has priced its inaugural RMBS transaction in the specialist space.

The non-bank lender upsized and priced a $250 million offering of non-conforming residential mortgage-backed securities, complementing its prime RMBS programme that has been running since 1985.

The transaction is just the second non-conforming issuance since the Global Financial Crisis.


RESIMAC had spent several months marketing the bond programme and business line to institutional fund managers and specialised credit investors, both domestically and offshore. The deal was launched with an initial size of $200 million and subsequently upsized to $250 million due to the demand for the bonds.

RESIMAC was encouraged by the strong interest in the final portfolio with a total of 10 institutional and credit investors participating in the transaction, including an offshore placement.

Speaking about the transaction, RESIMAC’s chief operating officer Allan Savins said the company was proud to have priced its first residential non-conforming RMBS in addition to receiving S&P’s STRONG servicer ranking for this business.

“It highlights the confidence and solidity of our position in the securitisation market and also demonstrates the strength of the specialist lending business and underlying product offering. We see this as a key growth opportunity for the company, supported by a robust prime operation,” he said.

Mr Savins said specialist lending’s unique products, that do not require lender’s mortgage insurance, are now a focal point of RESIMAC’s offering as many industry competitors have left the space altogether since the crisis or have tightened lending policies.

“This has created a great opportunity for RESIMAC to fill that void as we now focus on further promoting this product suite with the support of ample funding capacity, a strong commitment and investor base, and the added endorsement of our servicing capability.”

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