Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Pepper prices second sub-prime RMBS issue

Pepper Australia has priced its second non-conforming RMBS issue for 2014.

The $400 million issue, Pepper Residential Securities Trust No. 13 (PRS 13), was placed with the help of joint lead managers CBA and NAB, who also worked with the lender to securitise half a billion dollars in non-conforming loans for the US market back in April.

“This is a significant transaction, not only for Pepper, but also the Australian securitisation market,” Pepper co-group chief executive Patrick Tuttle said. 

“It’s pricing relative to prime issuance and the overwhelming investor interest reinforces the confidence the market has in Australian RMBS,” Mr Tuttle said.

“We are delighted with the strong support that we continue to receive from loyal repeat investors, with each of the tranches being oversubscribed and pricing inside the equivalent PRS 12 margins set in April 2014,” he said.

Advertisement
Advertisement

PROMOTED FEATURES


The issue was well supported by investors across the entire capital structure, many of whom were repeat buyers, Pepper Group treasurer Todd Lawler said.

“Our track record and commitment to always call our term deals at the first available date continues to attract strong support,” Mr Lawler said.

“This is a strong endorsement of Pepper’s business model, the credit quality of the underlying loan collateral and our expertise as a specialist mortgage servicer,” he said.

PRS13 is the fifteenth public issue of residential mortgage-backed securities backed by Pepper mortgages, increasing its total RMBS issuance to $5.6 billion.

Pepper prices second sub-prime RMBS issue
mortgagebusiness

Latest News

The major bank has reached a settlement with AUSTRAC to pay a record $1.3 billion penalty for over 23 million breaches of anti-money launder...

A mutual lender has signed a deal with a fintech lender to provide them with an initial $300 million in home loan funding. ...

A spike in credit provisions and COVID-related charges has triggered a 16 per cent fall in Heritage Bank’s earnings, offset by asset and d...

FROM THE WEB
podcast

LATEST PODCAST: How lenders are viewing the property price outlook

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

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