Bluestone Group continued the steady flow of securitisation deals coming to market with a new residential mortgage-backed securities (RMBS) deal on 30 June. The borrower says government intervention paved its path to market and is allowing the nonbank lender to continue originating and securitising prime and near-prime mortgages.
On 29 June, Bluestone Group launched its residential mortgage-backed securities (RMBS) deal, Sapphire XXIII 2020-1 Trust. The transaction has capped total volume of A$350 million (US$240.6 million) and may price as early as the day after launch. National Australia Bank is arranger, and joint lead manager alongside Commonwealth Bank of Australia and Macquarie Bank.
On 15 June, Bluestone Group (Bluestone) revealed plans for a potential residential mortgage-backed securities (RMBS) transaction from its Sapphire programme. Commonwealth Bank of Australia, Macquarie Bank and National Australia Bank have been mandated to engage investors.
One easy conclusion to draw about the COVID-19 pandemic is that the measures put in place to fight it will cause unemployment to rise precipitously. Anticipating this, lenders have already begun offering loan payment holidays and other types of forbearance.
Primary deals are now possible in the Australian securitisation market as a result of government support. Attention is turning to what effect the COVID-19 fallout might have on new and existing residential mortgage-backed securities (RMBS) pools.