Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Major aggregator settles $300m RMBS deal

The Australian Finance Group has successfully completed a $300 million residential mortgage-backed securities issue.

The AFG 2016-1 Trust RMBS transaction is the Australian Finance Group's (AFG) first issuance since 2014, and is broken into seven tranches, ranging from $220 million to $450,000 in size.

The transaction, which was arranged by National Australia Bank Limited (NAB) with joint lead managers from ANZ and NAB, will settle on November 4.

AFG chief operating officer David Bailey said the securitisation program is an important contributor to the company’s overall growth strategy.

He said: “To execute a transaction under the terms achieved, in a market which has been relatively volatile in 2016, is very pleasing. The other positive aspect was that we were able to welcome some new investors to our programme.

Advertisement
Advertisement

“The success of [this] issue reflects the confidence of domestic and offshore investors in the high-quality lending standards that AFG Securities apply.”

Adding that a “strong RMBS market it vital to ensure a greater level of competition and choice into the Australian mortgage market”, Mr Bailey concluded: “The performance of any mortgage starts and ends with the credit policies and appetite of the lender. Our AFG Securities programme has consistently delivered a strong performance and it is this performance which has helped underpin the success of our latest transaction.”

>The AFG 2016-1 Trust RMBS transaction is the Australian Finance Group's (AFG) first issuance since 2014, and is broken into seven tranches, ranging from $220 million to $450,000 in size.

The transaction, which was arranged by National Australia Bank Limited (NAB) with joint lead managers from ANZ and NAB, will settle on November 4.

AFG chief operating officer David Bailey said the securitisation program is an important contributor to the company’s overall growth strategy.

He said: “To execute a transaction under the terms achieved, in a market which has been relatively volatile in 2016, is very pleasing. The other positive aspect was that we were able to welcome some new investors to our programme.

“The success of [this] issue reflects the confidence of domestic and offshore investors in the high-quality lending standards that AFG Securities apply.”

Adding that a “strong RMBS market it vital to ensure a greater level of competition and choice into the Australian mortgage market”, Mr Bailey concluded: “The performance of any mortgage starts and ends with the credit policies and appetite of the lender. Our AFG Securities programme has consistently delivered a strong performance and it is this performance which has helped underpin the success of our latest transaction.”

[Related: Major aggregator posts strong growth amid market headwinds]

Major aggregator settles $300m RMBS deal
mortgagebusiness

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

  Following Saturday’s (21 May) federal election, here’s a recap of the housing policies we can expect to see this year. ...

The bank’s latest data suggests that mortgage fees have decreased during the last quarter, while surging over the past 12 months. ...

The non-bank group has closed its latest RMBS, stating that a portion will be focused towards its inaugural social bond. ...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.