La Trobe Financial starts marketing RMBS deal

Thursday, 07 May 2020

On 6 May, La Trobe Financial began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, La Trobe Financial Capital Markets Trust 2020-1. The transaction is expected to launch in the week beginning 11 April. Macquarie Bank is arranger for the deal, and joint lead manager alongside Citi, Commonwealth Bank of Australia, HSBC, National Australia Bank, Natixis and Wells Fargo Securities.

La Trobe Financial Capital Markets Trust 2020-1 indicative price guidance and structure

Tranche	Volume (A$m)	Expected ratings	Initial credit enhancement (per cent)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1S	281.25	AAA/Aaa	30	0.67	120 area
A1L	593.75	AAA/Aaa	30	3.2	195 area
A2	235	AAA/Aaa	11.2	3.2	275 area
B	37.5	AA/NR	8.2	3.9	350 area
C	36.25	A/NR	5.3	3.9	450 area
D	25	BBB/NR	3.3	3.9	550-575 area
E	12.5	BB/NR	2.3	3.9	800 area
F	12.5	B/NR	1.3	3.2	1,000 area
Equity 1	8.125	NR/NR	0.65	4	ND

Source: Macquarie Bank 6 May 2020