Mortgage House sounding investors for RMBS deal

Wednesday, 09 September 2020

On 9 September, Mortgage House began taking indications of interest for a residential mortgage-backed securities (RMBS) deal, Mortgage House RMBS Series 2020-1. The transaction has capped volume of A$400 million (US$288.8 million) and is expected to launch in the week beginning 14 September. Westpac Institutional Bank is arranger and joint lead manager alongside National Australia Bank.

Mortgage House RMBS Series 2020-1 initial price guidance and structure

Tranche	Indicative volume (A$m)	Expected ratings (S/F)	Weighted-average life (years)	Initial credit enhancement (per cent)	Indicative price guidance (bp/1m BBSW)
A1	340	AAA/AAA	2.6	15	145-150 area
A2	28	AAA/AAA	2.6	8	195 area
AB	7.4	AAA/AAA	4.5	6.15	220 area
B	8.2	AA/NR	4.5	4.1	250 area
C	6.8	A/NR	4.5	2.4	315 area
D	4.4	BBB/NR	4.5	1.3	410 area
E	2.4	BB/NR	4.5	0.7	ND
F	1.6	B/NR	4	0.3	ND
G	1.2	NR/NR	5.1	N/A	ND

Source: Westpac Institutional Bank 9 September 2020