Australia's most active securitizer, Macquarie Securitisation, last week priced the 32nd deal from its PUMA RMBS program. With domestic and overseas investors continuing to show strong appetite for Aussie RMBS, the transaction was upsized from A$1 billion ($733.3 million) to A$1.4 billion.
The latest offering, jointly led by Macquarie Bank and Deutsche Bank, was backed by 3,726 prime mortgages with a weighted average LTV of 73.4%. The loans are 100% covered, with Genworth and PMI Mortgage Insurance providing the guarantees.
The deal comprised A$1.372 billion of senior notes, rated triple-A by Moody's Investors Service and Standard &Poor's, which priced at 15 basis points over the bank bills swap rate (BBSW) for a 2.6-year year average life. In addition, A$28 million of subordinated paper - rated Aa2/AA - finished 21 points over BBSW for a six-year average life.
According to Mac-quarie, the weighted average margin is 15.3 basis points. That represents the lowest cost of funds for a purely Aussie dollar deal by the borrower.
"A total of 31 investors participated in the issue with approximately 66% of the orders coming from investors in Australia and New Zealand, 18% from Europe and 16% from the Asian region," comments Matthew O'Hare, treasurer at Macquarie Securitisation.
Aussie NIM ABS
Staying in Australia, mortgage originator RESIMAC has launched a net interest margin securitization through the RESIMAC NIM Master Trust. Societe Generale will arrange the $40 million issue, which was due to price as of press time.
The deal is backed by the residual income earned from RESIMAC's mortgage warehousing facilities and outstanding RMBS issues. The company's current loan pool is worth A$4.6 billion, comprising 19,163 loans with a current average LTV of 72.9% and seasoning of 28.4 months. All the loans are covered by mortgage insurance.
S&P assigned a single-A rating to the one-tranche offering, which has a legal final of 15 years and expected average life of 4.5-years.
Although NIM deals have been rare in Australia, there are tentative signs this is changing. Interstar Wholesale Finance completed an A$80 billion deal at the end of February, backed by the excess spread accrued on an A$16.6 mortgage portfolio (ASR, 3/6/06).
The single-A rated deal, led by ABN Amro and Macquarie, priced at 42 basis points over BBSW on a 3.6-year expected average life.
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