AFG completes its biggest ever RMBS
Mortgage aggregator AFG has increased the size of its latest issue of residential mortgage-backed securities and is paying a margin of 83 basis points on the A1 notes.AFG 2019-1 Trust RMBS raised A$500 million - up from the $350 million AFG was seeking when it launched the transaction. It is the largest transaction AFG has priced since it entered the RMBS market in 2013.It is also the first issue it has upsized. AFG chief executive David Bailey said in a statement that AFG's RMBS program was reaching a broader investor base.AFG will pay 83 bps over the bank bill swap rate on the $95 million of A1 notes, which have a weighted average life of 0.4 years.Pricing on the $355 million of A2 notes, which have a weighted average life of 3.1 years, was 128 bps over BBSW.Pricing on the $32.5 million of AB notes, which have a weighted average life of 4.4 years, was 215 bps over BBSW.Pricing on the B, C and D notes ranged from 250 bps to 400 bps. Pricing on the E notes was not disclosed, while the F notes were retained.