Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

RedZed prices $400m RMBS

The self-employed specialist lender has priced its second RMBS transaction of 2020 and eighth RMBS issue overall.

RedZed Lending Solutions has announced that it has successfully priced a residential mortgage-backed securities transaction worth $400 million.

The RedZed Trust Series 2020-2 is the lender’s second transaction of 2020 following its $300-million inaugural commercial mortgage-backed security (CMBS) transaction, RedZed Trust STC Series 2020-1, which settled in June.

The transaction was supported 100 per cent by real money across all tranches. The Australian Office of Financial Management (AOFM) was supportive of the transaction, but was not required.

The issuance is RedZed’s eighth RMBS issue and takes total issuance to $2.5 billion.

Advertisement
Advertisement

Commenting on the transaction, Evan Dwyer, managing director of RedZed, said: “We were pleased to achieve so much interest and proceeded without AOFM support.

“Investors’ early engagement signified their commitment to our securitisation program and confidence in RedZed’s understanding of the self-employed. Our low hardship and arrears also helped.

“We remain committed to supporting the self-employed, particularly during these challenging times.”

Moody’s and Fitch assigned preliminary ratings.

The $115 million Class A-1S notes, $165 million Class A-1L notes, and the $62 million Class A-2 notes were rated Aaaa(sf)/AAAsf.

The $29.20 million Class B notes, the $4.40 million Class C notes, the $7.60 million Class D notes, the $2.50 million Class E notes, and the $4 million Class F notes are assigned preliminary ratings of Aa2(sf), A2(sf), Baa2(sf), Ba2(sf) and B2(sf), respectively, with the offering completed by $7.60 million of unrated Class G-1 and G-2 notes.

The Commonwealth Bank of Australia and NAB acted as joint lead managers, and the transaction is due to settle on 10 September.

[Related: Specialist lender appoints new GM of distribution]

RedZed prices $400m RMBS
RedZed prices $400m RMBS
mortgagebusiness

Latest News

While the central bank went hard on its third consecutive 50-bp hike – without considering another option – the August minutes reveal it...

The state’s Premier has said residents impacted by this year’s floods will be offered buy-backs and land swaps, however no date has been...

Australia’s regional homes are following trends observed in capital cities, with prices dropping by 20 bps over the three months to July. ...

VIEW ALL

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!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

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