Powered by MOMENTUM MEDIA
subscribe to our newsletter

Non-bank prices second $1.25bn RMBS

La Trobe Financial has priced its second residential mortgage-backed securities transaction for 2021, after upsizing it from $750 million to $1.25 billion.

The Blackstone-owned company has said it achieved record pricing for its second $1.25 billion residential mortgage-backed securities (RMBS) issuance of 2021.

It noted that, due to strong interest in the 2021-2 transaction, it upsized the transaction from $750 million to $1.25 billion and brought forward the transaction by a week. 

The lender said the proceeds of the issue will be used to “continue writing home and business loans for everyday Australians at a critical time in the history of our economy”. 

La Trobe Financial CFO Martin Barry stated: “This $1.25-billion issuance continues to expand our already strong RMBS funding channel comprising of some 53 active holders of our paper...

Advertisement
Advertisement

“With this RMBS transaction, we achieved our goal of industry-leading pricing, notwithstanding increased levels of market supply and note participation from a select group of chosen investors comprising seven domestic, four from Asia, two from the United States and two from Europe or the UK,” he added. 

Mr Barry continued: “The 2021-2 transaction confirms the strength of our RMBS program, business platform and the quality of underlying assets. La Trobe Financial has co-invested alongside investors and currently holds $457 million of shock absorber and regulatory capital.” 

Chris Andrews, deputy CEO and chief investment officer at La Trobe Financial, added: “Our RMBS program continues to play an important role in our strategic funding program. 

“This issuance sits alongside over $30 billion of fully repaid term debt and warehouse funding lines that we have managed since the business started in 1952. 

“Our RMBS investors are substantial partners of our business, and this new funding will assist us to continue to support underserved borrowers as the Australian economy rebounds from COVID-19.”  

PROMOTED CONTENT


He noted that La Trobe Financial is currently originating over $12 billion per annum, adding that the issuance complements its institutional mandates and $6.3 billion credit fund. 

“We have built a disciplined investment and funding strategy and  continue to deliver an outstanding value proposition for our investors that will see the business continue to grow,” he said.

La Trobe Financial will pay 80 basis points over the Bank Bill Swap Rate (BBSW) on $975 million of A1 notes, which have a weighted average life of 2.6 years.  

Pricing on $139 million of A2 notes, which have a weighted average life of 2.6 years, was 105 basis points over BBSW.  

[Related: Non-banks announce RMBS, funding deals]



Non-bank prices second $1.25bn RMBS
Non-bank prices second $1.25bn RMBS
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

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

Banks are too reliant on regulatory oversight to do what is right for borrowers, the big four boss has said. ...

There has been a surge in Melbourne residents migrating to regional Victoria, and an uplift in new housing approvals in Geelong, new researc...

ASIC reported a significant increase in the number of ACL and AFSL applications it received in the past year due to licensing reforms, inclu...

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!

How long do you think it should take to discharge a mortgage?

Website Notifications

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