About Bluestone Mortgages
Founded in 2000, Bluestone Mortgages is a fast-growing lender and asset manager specialising in 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$11 billion in home loans for Australian and New Zealand customers. Bluestone provides prime and nonconforming home loans that fit a wide range of borrower circumstances. The business has developed a suite of industry best-practice systems and processes that enable it consistently to originate quality assets at equity-accretive margins.
Ownership and capital structure
In March 2018, entities associated with Cerberus Capital Management completed a transaction with Bluestone Group to purchase Bluestone’s Asia-Pacific operations. As a result, Bluestone in Australia and New Zealand is no longer related to Bluestone in the UK. The strategic focus of the group has reduced risk on both sides of the balance sheet, shifting lending focus toward lower credit-risk assets and reducing structural leverage. Bluestone has no debt at corporate level.
Bluestone maintains a disciplined underwriting and pricing policy that has resulted in a cumulative loss of 0.17% 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 an average loan-to-value ratio of 59%, a focus on higher-population metropolitan securities and a majority of owner-occupied principal-and-interest borrowers.
Bluestone launched its prime securitisation programme in 2021 in recognition of the success it has had moving its originations up the credit curve.
|SIZE OF LOAN BOOK||A$3.6BN|
|MAKEUP OF LOAN BOOK||
PRIME RESIDENTIAL MORTGAGES: 63.4%
|GEOGRAPHIC DISTRIBUTION OF LOAN BOOK||
|OUTSTANDING DEBT ISSUANCE||A$2.1BN|
The already wide investor base that has consistently supported its Sapphire securitisation programme has been significantly expanded as a result. Bluestone enjoys a diverse source of warehouse funders in Australia and New Zealand consisting of domestic and international banks and several institutional mezzanine investors.
Bluestone is a frequent issuer in the Australian RMBS market with 32 public securitisation trusts since 2002, including 14 transactions from 2013 to 2021. Going forward, Bluestone expects to issue at least three prime and one nonconforming deals per year across Australia and New Zealand. The Sapphire and Bluestone Prime securitisation programmes have issued more than A$10 billion of bonds domestically and offshore.
The Bluestone business is performing strongly after re-entering mortgage origination in Australia in 2013 and New Zealand in 2017. Having invested heavily over the last five years, Bluestone is generating strong financial performance and increases in lending volumes with significant uptake of product by brokers.
FOR FURTHER INFORMATION PLEASE CONTACT:
Chief Executive Officer
+61 2 8115 5167
Managing Director Treasury and Funding
+61 407 073 537
nonbank Yearbook 2021
KangaNews's sixth annual guide to the business and funding trends in Australia's nonbank financial-institution sector.