Lender Columbus Capital has completed an issue of residential mortgage-backed securities made up entirely of mortgage loans to self-managed superannuation funds – a first for the local securitisation market.

And it may not be the last from Columbus, judging by the success of the transaction. It upsized the deal from A$250 million to $400 million in response to investor demand. The Australian Office of Financial Management was available to support the deal but its support was not required.

Columbus Capital’s treasurer David Carroll said SMSFs make very good borrowers, with very low levels of arrears or hardship applications, and no losses.

Columbus, which lends primarily through the wholesale brand Origin Mortgage Management Services, has issued $2 billion of RMBS so far this year and its latest deal, Triton SMSF Bond Trust 2020 Series 1, is its 17th in all.

Columbus is paying a margin of 165 basis points over the one-month bank bill swap rate on the $220 million of A1-AU notes, which have an S&P rating of AAA and a weighted average life of 2.5 years.

Pricing on the $120 million A1-3Y notes, which have a AAA rating and a weighted average life of 3.3 years, is 180 bps over BBSW.

Pricing of the $28 million of A2 notes, which have a AAA rating and a weighted average life of 3.3 years, is 190 bps over BBSW.