Margins for securitisation deals are coming in, if the latest ME Bank deal is any guide.
ME Bank will pay 135 basis points over the one-month bank bill swap rate for the A$664 million A1 tranche of it SMHL Securitisation Fund 2012-2, which has a weighted average life of 2.4 years.
That margin is 20 points better than the pricing of most deals in the middle of the year.
The bank will pay a fixed rate of 4.88 per cent on the $80 million A2 tranche, which has a weighted average life of 4.95 years.
When ME Bank last issued in the RMBS market, in April, it paid 5.27...
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