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Bluestone completes $400m RMBS

The specialist lender has priced its first securitisation for 2019 and 28th issuance in total.

Bluestone has announced that it has completed its first securitisation in 2019 with a $400 million Sapphire XXI 2019-1 residential mortgage-backed security (RMBS) issuance.

The non-bank lender’s chief executive Campbell Smyth claimed that the transaction was “probably [Bluestone’s] best to date, with a very strong pool and significant domestic and offshore investor interest”.

“We have proven to the market that the quality of our operations and portfolios are amongst the best in the market, and as a result of this, we have seen fantastic interest in this deal,” the CEO continued.

Mr Smyth noted that the maximum loan-to-value ratio (LVR) in the pool is 85 per cent.

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“Since returning in 2013, we have never written a loan over 85 per cent LVR, something that helps secure our stability in the current declining market. We have also limited LVRs on investor and interest-only loans and have not written in high-density apartment buildings,” the Bluestone CEO said.

“We continue to refine policy to ensure that in two years’ time we can be as confident with the decisions we made today as we are now about the decisions made over the last few years.”

The lender’s chief financial officer Todd Lawler, who joined Bluestone this year from the role of Pepper Money’s group treasurer and executive director, said the latest RMBS is Bluestone’s first Capital Requirements Directive IV-compliant deal and that this would be the norm moving forward.

Bluestone, which was acquired by Cerberus Capital Management in April 2018, expects the next issuance to come in the third quarter.

In addition to Mr Lawler joining the lender this year, Bluestone’s general manager Tim Miller moved into the role of chief operating officer, while former COO Peter Wood has been re-appointed as managing director, New Zealand, following growth in that business since its relaunch in December 2017.

[Related: AFG prices $500m RMBS]

 

Bluestone completes $400m RMBS
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