Macquarie's RMBS pricing widens

Macquarie Group priced its latest issue of residential mortgage-backed securities on Friday, paying 11 basis points more for funding than it did when it last issued, last July.

Macquarie raised A$2 billion of funds through the issue, PUMA Series 2005-1 Trust.

Pricing on the $1.8 billion A tranche, which has a weighted average life of 2.7 years, was 90 bps over the bank bill swap rate.

Pricing on the B1 and B2 notes was not disclosed.

Last July, Macquarie paid 79 basis points on the $920 million top tranche of PUMA Series 2014-2 Trust.

A few weeks later the market peaked when Commonwealth Bank priced the top tranche of a Medallion RMBS at 70 bps. From that point margins started to widen.

Macquarie said in a statement that 16 investors participated in the transaction, with about one-third of the A notes placed offshore.