Australia's most active issuer, Macquarie Securitisation, has completed its latest RMBS through the PUMA program. Macquarie Bank and Deutsche Bank were joint leads on the A$1 billion ($745.5 million) offering, reprising their roles on the borrower's previous 2006 outings.

Despite an underlying pool of prime mortgages, which atypically included zero low-doc loans, Macquarie saw pricing finish wider than expected. The A$978 million class-A notes - rated triple-A by Moody's Investors Service and Standard & Poor's - ended 17 basis points over the Bank Bills Swap Rate (BBSW) on a 2.5-year average life.

That was two points wider than where the tranche was initially marketed, and the same margin outside where the senior piece settled on Macquarie's prime RMBS in April (ASR, 04/17/06).

The A$22 million subordinated bonds - rated Aa2/AA - which were initially expected to offer a spread in the low 20's, eventually priced at 25 points over BBSW for 5.7-years. That was four points wider than the equivalent tranche in April.

According to sources, 24 accounts participated with 42% of the notes placing with domestic investors, 48% in Europe and 10% in Asia.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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