AMP prices RMBS

The third of the mortgage funders to have received support in the latest round of government support for RMBS issuers, AMP Banking, priced its issue yesterday.

AMP's Progress 2009-1 Trust issued $535 million of notes. The $75 million class A1 tranche, to be rated AAA by Standard & Poor's, was priced at a margin of 90 basis points over the one-month bank bill swap rate.

The $425 million class A2 tranche, to be rated AAA by S&P, was priced at a margin of 130 basis points over the swap rate.

The A1 notes have an expected weighted average life of four months, while the A2 notes have an expected average life of four years.

Pricing on the $18 million AB notes and $17 million B notes was not disclosed.

The Australian Office of Financial Management bought the whole of the A2 tranche. Five other investors bought the rest of the issue.

Pricing is in line with the Bendigo & Adelaide Bank issue, Torrens Series 2009-1 Trust, which was also supported by the AOFM and was priced on Friday.

Westpac Institutional Bank and Deutsche Bank were the joint arrangers and joint lead managers of the AMP Banking deal.