MyState debuts in bond market

Philip Bayley
MyState Financial made its market debut with a sale of prime, mortgage-backed securities via ConQuest 2010-2 Trust. The name of the trust implies that this is the second RMBS issue this year: it is but the first issue was an internal securitisation.

The vendor is a deposit taking institution still listed as a credit union by APRA since its demutualisation and listing (following a merger with Tasmanian Perpetual Trustees) in 2009.

MyState sold A$250 million of mortgage bonds, equal to around one fifth of the lender's home loan portfolio. The Australian Office of Financial Management acquired notes totalling A$170 million.

Sliced into five tranches MyState sold the $50 million of class A1 notes, with a six month year weighted average life at 90 basis points over bank bills; $40 million of class A2 notes with a life of 1.5 years, priced at 140 bps over and $139 million of class A3 notes with a life of five years, priced at 130 bps over.

Of the two junior tranches MyState sold $11 million of class AB notes with a weighted life of 3.7 years, priced at 185 bps over; and $10 million of class B notes with a life of 6.9 years.

The Australian Office of Financial Management acquired notes totalling A$170 million.