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RMBS issuers continue their strong run

Strong demand for residential mortgage backed securities has allowed AMP Bank to upsize its latest transaction from A$500 million to $1 billion and price the senior notes at a margin of just 60 basis points.

The A notes of Progress 2021-1 Trust RMBS, with a value of $920 million and a weighted average life of 2.8 years, were priced at 60 bps over the one-month bank bill swap rate.

The $39.9 million of B notes, with a weighted average life of six years, were priced at 100 bps over one-month BBSW and the $13.9 million of B notes, also with a weighted average life of six years, were priced at 120 bps over BBSW.

The C, D, E, and F notes were priced at margins between 150 bps and 600 bps.

AMP Bank said 27 investors participated in the transaction. Seventy per cent of them were real money investors and 33 per cent were offshore investors.

AMP group treasurer Jason Bounassif said the pricing levels were the tightest the bank has seen since the GFC.

 

 

 

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