Spread drifts for Suncorp securitisation
Pricing on a pool of mortgage-backed securities sold by Suncorp Metway is a little wider than on corresponding sales of similar securities in July.The bank agreed to pay a spread of 130 basis points over the bank bill swap rate on $400 million of mortgage-backed bonds sold through the Apollo Series 2008-3 Trust.Members Equity Bank and Macquarie's Puma agreed to spread of 110 and 120 basis points over swap in three securitisations of prime home loan pools in July.Suncorp retained $44 million of the trust notes, which has become a standard credit feature of the few RMBS transactions in recent months.Rupert Heywood, Suncorp's head of funding, said this transaction was the result of reverse inquiry, that the bonds were sold to more than one investor, and that the bank worked on the transaction on its own and without the help of an investment bank, thus saving on fees.The transaction is effectively a private placement, but publication of a credit rating is a condition of confirming that the securities are eligible for use in repurchase agreements with the Reserve Bank of Australia.He said Suncorp sold three-year debt at 130 basis points over swap back in June and that this Apollo trust, with an average life of around three years, thus provided similar pricing.After a lull during August RMBS activity might be picking up, Reuters reporting that Macquarie's Puma may soon sell more securities.