BOQ starts marketing Series 2018-1 REDS RMBS transaction

Wednesday, 16 May 2018

On 16 May, Bank of Queensland (BOQ) began taking indications of interest for its Series 2018-1 REDS Trust residential mortgage-backed securities (RMBS) transaction. Indicative total volume for the deal, expected to launch 21 May, is A$500 million (US$373.4 million).

Series 2018-1 REDS Trust indicative price guidance and structure

TrancheIndicative volume (A$m)Expected ratings (S&P/Fitch)Weighted-average life (no. of years)Indicative price guidance (bp/1m BBSW)
A1 460 AAA/AAA 2.8 102-105 area
A2 13 AAA/AAA 6.1 115-120 area
AB 4.7 AAA/NR 6.1 145-155 area
B 8.9 AA/NR 6.1 165-175 area
C 6.7 A/NR 6.1 240-260 area
D 3.1 BBB/NR 6.1 330-350 area
E 3.6 NR/NR 6.1 590

Source: National Australia Bank 16 May 2018

National Australia Bank (NAB) is arranging the transaction and is sole lead manager for Class A2, Class AB, Class B, Class C, Class D and Class E notes. Commonwealth Bank of Australia, NAB, SMBC Nikko and Westpac Institutional Bank are joint lead managers for the Class A1 notes.