Firstmac prices RMBS

John Kavanagh

Mortgage lender firstmac has priced a A$1.1 billion issue of prime residential mortgage-backed securities, paying a margin of 120 basis points over the bank bill swap rate on the senior notes.

The A-1 notes of Firstmac Mortgage Funding Trust No.4 Series 2022-3 have an issue size of $935 million and a weighted average life of 2.8 years. They were priced at 120 bps over one-month BBSW.

When Firstmac issued in early March it paid a margin of 103 bps on the A-1 notes.

The A-2 notes in the latest transaction, worth $99 million and with a weighted average life of four years, were priced at 185 bps over one-month BBSW.

The B notes, worth $34.6 million and with a weighted average life of 4.8 years, were priced at 220 bps over one-month BBSW. The C, D and E notes were priced at margins between 250 bps and 480 bps.