Firstmac launches A$1 billion RMBS transaction

Monday, 04 June 2018

On 4 June, Firstmac launched its residential mortgage-backed securities (RMBS) transaction, Firstmac Mortgage Funding Trust No.4 Series 2-2018. The deal is for a total volume of A$1 billion (US$756.4 million) and will not grow. The Class A1 notes have a volume of A$850 million and have been preplaced.

Firstmac Mortgage Funding Trust No.4 Series 2-2018 indicative price guidance and structure

Tranche	Indicative volume (A$m)	Expected ratings (S&P/Fitch)	Credit enhancement (per cent)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1	850	AAA/AAA	15	3.2	ND (preplaced)
A2	70	AAA/AAA	8	4.2	160 area
AB	56	AAA/NR	2.4	5.2	175-180 area
B	19.5	AA-/NR	0.45	5.2	190 area
C	3.4	A/NR	0.11	5.2	290 area
D	1.1	NR/NR	N/A	7	ND

Source: J.P. Morgan 4 June 2018

Pricing is expected on or before 8 June, according to lead managers ANZ and J.P. Morgan.