BOQ launches Series 2018-1 REDS RMBS transaction

Bank of Queensland (BOQ) launched its Series 2018-1 REDS Trust residential mortgage-backed securities (RMBS) transaction on 21 May. The deal has a minimum volume of A$500 million (US$375.8 million) and is expected to price on or before 25 May.

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 6.1 165-170 area
C 6.7 A/NR 6.1 240 area
D 3.1 BBB/NR 6.1 330 area
E 3.6 NR/NR 6.1 590 area

Source: National Australia Bank 21 May 2018

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