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Bluestone Group (Bluestone) launched its new residential mortgage-backed securities (RMBS) issue, Sapphire XVI 2017-1, on 16 May. The indicative A$250 million (US$185.6 million) transaction has an 12-tranche structure (see table below), in which the class B, C, D and E notes are preplaced according to the deal's lead managers.
Australia’s big-four banks have attacked the levy on their liabilities proposed by the recent federal budget, describing the levy as a rushed, ill thought out, inadequately consulted piece of “bad policy”. All four majors published submissions made to Treasury on 15 May, in which they set out a raft of complaints and proposed changes to the levy.
On 16 May, Nordic Investment Bank (NIB) (AAA/Aaa) launched a capped A$125 million (US$92.7 million) tap to its April 2022 Kangaroo bond. The deal is being marketed at 35 basis points over semi-quarterly swap or 39.5 basis points over Australian Commonwealth government bond and is expected to price on or before 17 May.
Progress 2017-1, a new residential mortgage-backed securities (RMBS) deal from AMP Bank, launched on 16 May. The forthcoming funding and capital-relief transaction has indicative volume of A$500 million (US$370.8 million) and indicative pricing on the class A notes is in the area of 110 basis points over one-month bank bills.
MyState Bank started taking indications of interest for its Conquest 2017-1 residential mortgage-backed securities (RMBS) deal on 15 May. The forthcoming six-tranche transaction has indicative volume of A$400 million (US$296.1 million).
NWB Bank (AAA/Aaa) mandated a tap to its July 2027 Kangaroo bond on 15 May. The forthcoming transaction has initial price guidance of 67 basis points over semi-quarterly swap and is expected to price on 16 May.
Crown Group Finance (Crown) revealed on 12 May that it has extended the deadline on its offer to buy back all or some of its November 2019 Australian dollar notes. The offer was announced on 1 May.
Bank of Queensland introduced conditional pass through to Australian covered bonds during the second week of May while New South Wales Treasury Corporation revealed it has reduced its expected term-funding task for the current year to a A$200 million (US$147.7 million) net repayment through the completion of the long-term lease of Endeavour Energy. Deal flow also continued apace.