FlexiGroup ABS shows further funding cost reduction
Issuers of residential mortgage-backed securities are not the only players in the asset-backed securities market reporting improved pricing.Finance company FlexiGroup has completed the fourth issue of asset-based securities supported by loans originated by Flexi's interest-free finance business Certigy, raising A$255 million.The $89.2 million of A1 notes, which have a weighted average life of 0.3 years, were priced at 50 basis points over the bank bill swap rate.The $108.4 million of A2 notes, which have a weighted average life of 1.4 years, were priced at 100 bps over the swap rate.The $22.9 million of B notes, which have a weighted average life of 1.4 years, were priced at 140 bps over the swap rate.Pricing on the C, D, E and F tranches was not disclosed.When FlexiGroup last issued asset-backed securities, in September last year, it paid 60 bps on the A1 notes and 120 bps on the A2 notes.