Liberty Financial has priced A$1.0 billion securitisation deal, backed by a portfolio of solely prime mortgages. This deal, Liberty's eighth prime mortgage securitisation overall and its first prime mortgage deal for 2021, takes Liberty’s total RMBS issuance for the month of March to more than A$1.6 billion.
Pricing for three tranches of the Liberty PRIME Series 2021-1 transaction, to be rated Aaa(sf)/AAAsf by Moody’s Investors Service and Fitch Ratings, was disclosed by Liberty yesterday:
• The A$850 million Class A1 notes, with a weighted average life of about 2.6 years, were priced at a margin of 75 basis points over the one month bank bill swap rate.
• The $44 million Class A2 notes, with a weighted average life of about 4.1 years, priced at a margin of 95 basis points over 1m BBSW.
• The A$43 million Class AB notes to be rated, with a weighted average life of about 4.1 years, priced at a margin of 115 basis points over 1m BBSW.
• The pricing of the Class B, C, D, E and F notes, expected to be rated by Moody's as Aa2(sf), A2(sf), Baa2(sf), Ba2(sf) and B2(sf), respectively, was not disclosed.
The issue is backed by a pool of prime residential mortgages with a weighted average loan-to-value ratio of 67 per cent. In addition, the collateral is well seasoned at approximately 22 months.
National Australia Bank was the sole arranger and was also a joint lead manager, along with BofA Securities, Commonwealth Bank of Australia, Deutsche Bank and Westpac Banking Corporation.
Defence Bank also priced an RMBS deal yesterday, its first for 2021. The six tranches of the Salute Series 2021-1 were headed by a A$276 million tranche of Class A notes, which priced at 70 basis points over 1-month BBSW. These notes were rated Aaa(sf) by Moody's.
The $15.6 million tranche of Class B notes was priced at 150 bp over 1mBBSW. All six Salute Series tranches were priced at par.
The notes are backed by a pool of prime first ranking residential mortgage loans originated by Defence Bank. The arranger and sole lead manager was ANZ.
Earlier this week specialist non-bank finance company RedZed Lending Solutions raised A$550 million, its largest RMBS transaction to date. The portfolio included 96.5 per cent of loans to self-employed borrowers, mostly extended on an 'alt doc' basis.