La Trobe Financial prices non conforming RMBS

John Kavanagh
Investors were also keen to get their hands on La Trobe Financial's higher yielding mortgage-backed securities. La Trobe raised A$250 million paying a margin of 115 basis points on its non-conforming securities.

La Trobe Financial Capital Markets Trust 2015-1 is backed by a pool of mortgages that includes 56.3 per cent low doc loans and 35.9 per cent interest-only loans. The average loan-to-valuation ratio is 66.7 per cent.

La Trobe will pay 115 bps over the one-month bank bill swap rate on the $162.5 million A1 notes, which have a weighted average life f 2.2 years.

It will pay 145 bps over the swap rate on the $44.5 million of A2 notes, which have a weighted average life of 2.2 years.

Pricing on the B, C, D, E and F notes was not disclosed.