Australian Mortgage Securities, a mortgage finance business owned by ABN AMRO, priced its biggest euro mortgage-backed transaction to date.

The US$750 million deal featured US$300 million of Class A-1 senior notes with an average life of one year and five months, and US$425.5 million of Class A-2 notes with an average life of four years and eight months. The tranches were priced at 20 and 30 basis points respectively over Libor.

Also included was a domestic subordinated issue, equivalent to 3.25% of the overall deal, priced at 70 basis points over the 90-day bank bill rate. This was AMS' second euro issue, its first having taken place in July last year. ABN AMRO sources said there was no meaningful pricing comparison between the earlier, US$500 million, deal and the more recent transaction.

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