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AFG prices RMBS

Australian Finance Group has completed the first issue of residential mortgage-backed securities for the year, pricing a A$450 million non-conforming deal at margins as low as 60 basis points.

The A1-S notes, worth $100 million and with a weighted average life of 0.5 years, were priced at 60 bps over the one-month bank bill swap rate.

The A1-L notes, worth $237.5 million and with a weighted average life of 2.7 years, were priced at 105 bps over one-month BBSW.

And the A2 notes, worth $82.6 million and with a weighted average life of 3.9 years, were priced at a margin of 150 bps.

AFG said the funding would be used to provide competitive non-conforming products to its broker network.

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