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CBA prices huge Medallion RMBS

19 August 2013 4:51PM
The widening of margins in the mortgage-backed securities market over the past couple of months has not troubled Commonwealth Bank, which priced a A$3.2 billion issue on Friday at margins that were very close to the pricing of its previous deal in February.When the transaction was launched last week, CBA was seeking a minimum of $750 million.Pricing on the $2.01 billion A1 tranche of Medallion Series 2013-2, which has a weighted average life of 2.5 years, was 80 basis points over the one-month bank bill swap rate.Pricing on $525 million A2 tranche, which has a weighted average life of 3.5 years, was 90 bps over swap.Pricing on the $400 million A3 tranche, which has a weighted average life of 4.9 years, was 115 bps over a matched asset swap.Pricing on the $200 million B tranche and the $64 million C tranche was not disclosed.In February, CBA priced the top tranche of the Medallion Series 2013-1 at 80 bps over swap and the A2 tranche at 88 bps over swap.

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