CUA makes a successful return to the RMBS market

CUA has completed its first issue of residential mortgage-backed securities since July 2013, paying a margin of 95 basis points on the top tranche of the deal.

CUA launched Series 2015-1 Harvey Trust early last week with a funding target of A$500 million. In the end it raised $750 million.

Pricing on the $690 million of A notes was 95 bps over the one-month bank bill swap rate.

Pricing on the $40.5 million of AB notes was 175 bps over the swap rate.

Pricing on the $15 million of B notes was 240 bps over swap, pricing on the $3.4 million of C notes was 330 bps and the margin on the $1.2 million of D notes was 525 bps.

The issue is backed by a pool of prime residential mortgages. With CUS's base in Brisbane, 43.5 per cent of the loans originated in Queensland. The average loan-to-valuation ratio is 64.2 per cent. Loans with LVRs above 80 per cent make up 16.6 per cent of the portfolio.

CUA's pricing was wider than Macquarie Group's earlier in the month. Macquarie paid a margin of 90 bps on the $1.8 billion A tranche of PUMA Series 2005-1 Trust.