A Tasmanian lender has priced $300 million in residential mortgage backed securities (RMBS), in a move that marks the “exceptional performance” of its Australian residential mortgages.
MyState Bank Limited attributed its success to the “level of investor participation and interest … both domestically and abroad” in its pricing of its CONQUEST Series 2016-2 Trust RMBS transactions, which are backed by Australian prime residential mortgages originated by MyState Bank.
“The exceptional performance of MyState’s Australian residential mortgages, and in particular, the arrears profile of our Tasmanian and growing inter-state loan portfolio continues to attract strong demand within our securitisation program,” said Melos Sulicich, MyState's managing director.
Meanwhile, the lender’s senior tranches of notes received a preliminary rating of AAA (sf) from Standard and Poors and Fitch Ratings.
MyState’s highest class A1 notes were priced at $270 million (one month bank bill swap rate + 130 basis points) while its lowest class B3 notes were priced at $1.5 million (one month bank bill swap rate + 625 basis points).
“MyState continues to build depth and diversity in its funding program which has been affirmed by the level of investor participation and interest in our CONQUEST program, both domestically and abroad,” concluded Mr Sulicich.
[Related: MyState issues $10m of subordinated notes]