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

Firstmac completes $500m RMBS deal

Non-bank lender Firstmac has successfully placed and priced a residential mortgage-backed securities (RMBS) deal worth $500 million despite citing difficult market conditions of late.

The Firstmac Mortgage Funding Trust Series 2-2015 was arranged by NABSecurities Australia and jointly led by ANZ and Westpac. A total of 15 investors participated in the transaction, including 13 real-money accounts.

Firstmac chief financial officer James Austin said the group was pleased to have achieved the result even though market conditions were less favourable than its last RMBS issuance – a post-GFC record-breaking $1 billion deal.

Advertisement
Advertisement

“It has been a difficult market of late, so we are happy with the outcome of the transaction,” he said.

The deal priced at +117, which was 0.19 percent wider than the previous transaction.

“That result reflects the general market widening that has been observed in recent months, when funding costs have increased across the industry by roughly 20 basis points,” Mr Austin said.

It has been more than a decade since Firstmac commenced RMBS issuances, and Mr Austin said investor interest hadn’t waned over time.

“An offering with a strong track record is generally well received by the investor market, and Firstmac bonds are certainly consistent with that trend,” he said.

According to Mr Austin, it was Firstmac’s ability to harness innovation in the home loan sector that encouraged investors to pursue its RMBS bonds.

“Steadily, Firstmac has captured market share from conventional lenders by using online technology to create opportunity and open new markets,” he said.

“The home loan industry in Australia is dynamic and fiercely competitive, and Firstmac has not stood still in the face of rapid change.”

The non-bank lender has issued more than $14 billion in RMBS since 2003.

Firstmac completes $500m RMBS deal
mortgagebusiness

Latest News

The federal government has committed an additional $130 billion in support to protect jobs threatened by the economic fallout from the cor...

New government-led interventions in the housing market in response to the coronavirus outbreak are set to further hinder transaction activit...

The number of owners withdrawing their property from auction soared to 40 per cent last week, following the introduction of a ban on auction...

FROM THE WEB
podcast

LATEST PODCAST: Further relief for SMEs and borrowers

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

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