Member's Equity has launched its second global rule 144A residential mortgage-backed security issue, SMHL Global Fund No2. The issue is also Members' eleventh securitization issue, and its public issuance now totals A$4 billion. Credit Suisse First Boston (CSFB) arranged and lead managed the deal, with Deutsche Banc Alex. Brown and UBS Warburg as co-managers.
The notes are secured on 9, 924 mortgages worth A$1.1 billion, with a weighted average loan-to-value ratio of 68.6%. Standard & Poor's listed this as a deal strength in view of the low weighted average seasoning of 6.8 months. All mortgage borrowers are qualified at an interest rate 2% higher than the prevailing standard variable rate.