The steady stream of Australian issuance looks set to continue over the coming weeks, with several regular issuers returning to the market. Bank of Queensland is leading the way with a A$1.6 billion-equivalent ($1.2 billion) prime RMBS through its REDS facility. ABN Amro and Deutsche Bank are joint lead managers.
The deal, which features 100% cover from PMI Mortgage Insurance and Genworth, marks the first time the bank has issued a euro-denominated tranche. Standard & Poor's has assigned triple-A ratings to the 400 million ($506.2 million) and A$600 million senior notes; with the A$48 million subordinate piece rated AA'.
Meanwhile, consumer finance specialist Liberty Financial has hired Credit Suisse and Deutsche to arrange a A$1.1 billion deal backed by non-conforming and subprime mortgages, with pricing expected by Nov. 6. The offering features an A-1+' rated money market tranche, plus longer-dated notes with ratings ranging from triple-A to double-B.
Liberty completed recently a A$150 million auto-loans ABS. The A-1+' money market notes finished 10 basis points over the Bank Bills Swap Rate, while the triple-A senior tranche offered a 22 point spread.
Mobius Financial Services last week held domestic roadshows for a nonconforming RMBS. The company appointed Commonwealth Bank of Australia to arrange the sale, with deal size still to be determined.
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