Australian RMBS issuer Perpetual is in the market with SMHL Securitisation Fund 2011-1  worth A$600 million.

The deal is backed by prime residential MBS secured by first-registered mortgages over Australian residential properties, according to a presale report from Standard & Poor's, which rated the deal's top two tranches.

Part of the offering's credit enhancement, S&P, is from lenders' mortgage insurance covering 100% of the face value of all loans aside from accrued interest and reasonable costs of enforcement.

S&P said that the three-tranche transaction, which is expected to close this month, has a weighted average loan seasoning of 40.3 months. This is considered high versus other Australian RMBS pools.

In terms of current balance, the rating agency said that 42.1% of the portfolio is greater than three years seasoned. It also mentioned that the deal's weighted average current LTV ratio is comparatively low at 61.1%. Additioanlly, most of the loans worth 87.1% of the pool have an LTV of less than 80%.

For further preliminary information the transaction, please click the link below from the ASR Scorecards database.

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