Founded in 2000, Bluestone Group is a well-diversified originator of prime (including self-managed superannuation fund), near-prime and specialist residential home loans in Australia and New Zealand. It has a team of more than 300 professionals across Australia, New Zealand and the Philippines, and manages more than A$14 billion in loans for Australian and New Zealand customers, including about A$5.7 billion (equivalent) of loans in its own mortgage book.

In March 2018, Cerberus Capital Management completed a transaction to purchase Bluestone, bringing significant capital, and operational and credit expertise. The strategic focus has been to incorporate a greater proportion of lower credit-risk assets, expand the product set and broaden investor relationships.

Bluestone undertook several strategic initiatives in 2019, including a redesign of its product set and structural changes that saw its S&P Global Ratings servicer rating upgraded to “strong”, the highest rating an RMBS issuer can achieve.

Bluestone maintains a disciplined underwriting and pricing policy that has resulted in a cumulative loss of 0.1% in Australia since it recommenced lending in 2013. Since lending recommenced in New Zealand, in 2017, no losses have been recorded. Bluestone’s portfolios are built on conservative security criteria, with a weighted average LVR of 68%, a focus on higher-population metropolitan securities and mostly owner-occupied principal and interest borrowers.

Bluestone is a frequent RMBS issuer, with 37 public trusts since 2002 including 19 transactions from 2013 to 2022. In 2021, Bluestone launched its prime securitisation programme, completing inaugural issuance from each of its Australian and New Zealand prime RMBS programmes.

In 2019, Bluestone commenced issuance of CRD IVcompliant securitisations, broadening the range of international investors able to participate in its programmes. Going forward, Bluestone expects to issue 3-5 RMBS deals per year across Australia and New Zealand. Bluestone also enjoys a diverse source of warehouse funding in Australia and New Zealand, consisting of domestic and international banks and several institutional mezzanine investors.

Bluestone is scaling to become one of the dominant nonbanks lending in Australasia. The business originated more than A$3.5 billion in loans and grew total loan receivables to more than A$5.7 billion (equivalent) in FY22. Bluestone reinvests all profits into further growth and has had the benefit of additional growth capital to increase funding capacity.

The company has launched a new platform for mortgage origination in Australia and will launch new technology in New Zealand. Bluestone recently launched a new residential SMSF product and is seeking to capture market share via its market leading service levels.

Milos Ilic-Miloradovic
Treasurer
+61 429 877 715
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Todd Lawler
Managing Director Funding Partnerships
+61 407 073 537
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www.bluestone.com.au