Pricing improves for small lenders too
The big banks are not the only issuers finding plenty of willing investors in the residential mortgage-backed securities market. On Friday, Resimac increased the size of its latest issue, Premier Series 2014-1, and priced below the margin it was paying last year.Resimac upsized the US dollar notes in the issue from US$150 million to $US200 million. Pricing on the notes has not been finalised.Resimac also upsized the A2 notes from A$295 million initially offered to $470 million. Pricing on the notes, which have a weighted average life of 2.8 years, was 105 basis points over the one-month bank bill swap rate. In March last year, Resimac paid 115 bps over swap for $309 million of notes with a weighted average life of 2.5 years.In the latest deal, pricing on the $33.7 million of AB notes, which have a weighted average life of 4.6 years, was 160 bps over swap.Pricing on the $25.9 million of B1 notes, which have a weighted average life of 4.5 years, was 275 bps over swap. Pricing on the $4.1 million of B2 notes was not disclosed.Resimac issued a US dollar tranche that has not yet been priced.