Pepper starts marketing I-Prime 2018-1 RMBS deal

On 17 May, Pepper Group (Pepper) began taking indications of interest for its I-Prime 2018-1 Trust residential mortgage-backed securities (RMBS) transaction. The deal has indicative total volume of A$400 million (US$300.9 million) and is expected to launch in the week commencing 21 May.

TrancheIndicative volume (A$m)Expected ratings (S&P)Weighted-average life (no. of years)Indicative price guidance (bp/1m BBSW)
A1-S 120 AAA 0.8 70 area
A1-L 200 AAA 3 115-120 area
A2 48 AAA 3.7 160-170 area
B 10.6 AA 3.7 high 100s area
C 8 A 3.7 high 200s area
D 5.4 BBB 3.7 high 300s area
E 3.6 BB 3.7 high 500s area
F 2.2 B 3.5 high 600s area
G 2.2 NR 4 ND

Source: National Australia Bank 17 May 2018

National Australia Bank is arranging the transcation, as well as leading alongside Commonwealth Bank of Australia and Westpac Institutional Bank.