The latest Australian RMBS transaction for non-bank mortgage lender Resimac will offer a tranche, targeting U.S. investors.
According to a Standard & Poor’s presale report, $150 million in securities backed by Aussie residential mortgages will be on offer under the issuer’s latest deal from its RESIMAC Triomphe Trust. S&P expects to rate the notes AAA’.
Another four tranches denominated in Australian dollars are also on offer under the Series 2014-1 transaction.
The notes targeting U.S. investors are structured with a final maturity date of December 2045.
More than 91% of the portfolio is insured by Genworth Financial Mortgage Insurance Pty. “The principal risk in this transaction is a lowering of the rating on Genworth by one category or more,” explained S&P.
Approximately 48% of the portfolio represents loans with a current LTV ratio higher than 75%; 43.5% of the pool comprises loans where the point of the loan was to refinance with an equity takeout; and 40.5% of the portfolio is comprised of loans with interest-only periods of up to 15 years.
The chart below tracks Australian RMBS issuance since 1995.