Torrens doubled to $1bn
Bendigo and Adelaide Bank became only the second prime RMBS issuer to come to the market this year without AOFM as a cornerstone investor. And despite the plain vanilla structure of its offering, via Torrens Series 2009-3 Trust, investor demand was such that the issue size was doubled to A$1.0 billion from A$500 million, at the launch. Moreover, the pricing of the A$915 million, Class A, AAA rated tranche with a 2.8 year weighted average life, came in at 135 basis points over 30-day bank bills. This compares well with the 150 bps over that ME Bank paid on its comparable A$1.2 billion, Class A tranche, in its SMHL Securitisation Fund 2009-2 transaction priced in September.This brings the number of non-AOFM backed RMBS issues this year to four and is setting the scene for a return to more normal conditions in this market. Bank of Queensland has expressed interest in making an independent return to the market and, no doubt, Suncorp Metway is looking at it too. Moreover, the non-bank originators could see their relative competitive position restored as the banks push up mortgage rates ahead of increases in the official cash rate.