Liberty launches A$1 billion RMBS deal

Late in the day on 29 March, Liberty Financial launched a new residential mortgage-backed securities (RMBS) deal, Liberty Prime Series 2021-1. The capped A$1 billion (US$763.5 million) transaction is expected to price no later than 1 April. National Australia Bank is arranger and joint lead manager alongside BofA Securities, Commonwealth Bank of Australia, Deutsche Bank and Westpac Institutional Bank.

Liberty Prime Series 2021-1 structure and indicative price guidance

TrancheVolume (A$m)Expected ratingsInitial credit enhancement (per cent)Weighted-average life (years)Indicative price guidance (bp/1m BBSW)
A1 850 Aaa/AAA 15 2.6 75
A2 44 Aaa/AAA 10.6 4.1 95
AB 43 Aaa/AAA 6.3 4.1 115
B 30 Aa2/NR 3.3 4.1 ND
C 7 A2/NR 2.6 4.1 ND
D 11 Baa2/NR 1.5 4.1 ND
E 11 Ba2/NR 0.4 4.1 ND
F 3 B2/NR 0.1 3.8 ND
G 1 NR/NR N/A 5 ND

Source: National Australia Bank 29 March 2021