Briefs: MyState pays up for RMBS, hybrid bank bonds disliked in survey

Ian Rogers
  • A securitisation of prime mortgages originated by MyState Bank and The Rock Building Society, through the Conquest 2014-2 Trust, produced pricing at the high end of a recent range for mortgage-backed bonds. The A$262.5 million of Class A1 notes MyState placed at 95 basis points over one month swap, ten bps wider than paid by Bendigo and Adelaide Bank earlier in the week.
  • Banks shouldn't create new kinds of debt that can be written off in a crisis, according to investors surveyed by Nomura International and reported by Bloomberg. Nomura found that conventional, tier two style securities such as subordinated notes with set maturity dates, are favoured given a lack of clarity from regulators on alternative securities such as loss-absorbing bonds.