Australia-based FirstMac launched an offer of A$340 million ($315 million) of prime RMBS, according to a Bloomberg report.

FirstMac is an IT-based RMBS originator, servicer, and funder. The firm offers borrowers a complete range of lending products that incorporate transaction banking facilities through differe nt distribution channels.

Australia & New Zealand Banking Group (ANZ) will lead the refinancing of a $350 million RMBS issue sold in 2006 and called FirstMac Bond Series 1C-2006 Trust. Final maturity of the issue called FirstMac Bond Series 1C-2006 Trust (2010 Notes) will be December 20, 2041,  Standard & Poor's said.

FirstMac priced the main class of its 2006 notes to yield 23 basis points more than the bank bill swap rate, and had the option to either buy them back or double the spread from December last year, according to data compiled by Bloomberg.

The issue's top-rated tranche is being marketed at 140 to 145 basis points over BBSW, according to Bloomberg, which is about ten basis points wider than the range seen in recent Austrailian RMBS issues ibecause the pool of loans includes 16% of low-documentation loans which are seen as riskier than full-documentation loans.

According to S&P, the issue pool includes loans with an average loan-to-value ratio of 75% and an average time since issue, or seasoning, of 34 months. Interest-only loans make up 80% of the pool, while 8% of the mortgages consist of loans that had no income verification.

The entire pool of loans is insured by mortgage insurers.

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