Bluestone launches Sapphire XXIII RMBS deal
- Monday, 29 June 2020
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$240.6 million) and may price as early as the day after launch. National Australia Bank is arranger, and joint lead manager alongside Commonwealth Bank of Australia and Macquarie Bank.
Sapphire XXIII 2020-1 Trust indicative price guidance and structure
| Tranche | Indicative volume (A$m) | Expected ratings (S/M) | Weighted-average life (no. of years) | Initial credit enhancement (per cent) | Indicative price guidance (bp/1m BBSW) |
|---|---|---|---|---|---|
| A1S | 70 | AAA/Aaa | 0.6 | 30 | 95-100 area |
| A1L | 175 | AAA/Aaa | 2.5 | 30 | 165-170 area |
| A2 | 61.25 | AAA/Aaa | 2.5 | 12.5 | 220 area |
| B | 15.75 | AA/NR | 3 | 8 | 300 area |
| C | 10.5 | A/NR | 3 | 5 | 400 area |
| D | 7 | BBB/NR | 3 | 3 | 525 area |
| E | 2.45 | BB/NR | 3 | 2.3 | ND |
| F | 3.5 | B/NR | 1.7 | 1.3 | ND |
| G1 | 2.45 | NR/NR | 3 | 0.6 | ND |
| G2 | 2.1 | NR/NR | 3 | N/A | ND |
Source: National Australia Bank 29 June 2020
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