Suncorp Bank yesterday finalised terms for the sale of A$1 billion in mortgage-backed securities, a deal noteworthy for the limited participation of the Australian Office of Financial Management.
Yesterday, the bank said it had sold $930 million in bonds (with an average life of 3.86 years) at a spread of 155 basis points over the one month swap rate. It sold $52 million in a subordinated tranche (with an average life of 5.85 years) at 300 bps over swap. Pricing was not disclosed on a further $18 million of seller notes.
The AOFM had agreed to buy an unspecified level of notes...
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