Powered by MOMENTUM MEDIA
subscribe to our newsletter
Pepper prices largest RMBS deal in a decade

Pepper prices largest RMBS deal in a decade

The specialist lender announced today that it has priced an $800 million non-conforming residential mortgage-backed securities deal, the largest in the Australian market since 2006.

In a trading update to the ASX today, Pepper Group Limited announced that it has priced its $800 million Pepper Residential Securities Trust No. 17 (PRS17) transaction.

According to the lender it is the largest deal in its history, exceeding its previous $700 million PRS16 transaction, and is the “largest non-conforming mortgage securitisation in the Australian market since 2006”.

Advertisement
Advertisement

Pepper’s co-group chief executive officer Patrick Tuttle explained that a unique feature of the PRS17 deal is the inclusion of two US dollar scheduled principal amortisation tranches, each with a different weighted average life, as well as an equivalent Australian dollar fixed rate amortising tranche.

Mr Tuttle commented that the innovative structure of the PRS17 deal has enabled the company to “attract a more diverse range of investors to this deal, particularly among US institutional buyers, for whom these structures are particularly attractive”.

“It also increases the breadth and depth of our investor base, which is hugely important as we continue to deliver strong above-system growth in our Australian residential lending business,” he said.

The transaction will settle on 13 October 2016.

Pepper prices largest RMBS deal in a decade
mortgagebusiness

 

Latest News

Westpac and the Commonwealth Bank’s share of the third-party mortgage market has spiked, in contrast to sharp declines from NAB and ANZ, t...

A non-major lender has dropped its fixed mortgage rates, becoming the fourth lender to reprice its offerings over the past two weeks.   ...

The interest lenders earn on mortgages is expected to remain under pressure this year and next, according to Moody’s. ...

FROM THE WEB
podcast

LATEST PODCAST: What drops in fixed rates may mean for the mortgage market

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?