03 October 2012 6:45am

National Australia Bank returned to the asset-backed securities market late last week, after an absence of eight years. The A$400 million transaction involved the issue of securities backed by loan and lease receivables originated by NAB subsidiary Medfin.

NAB will pay 65 basis points over the one-month bank bill swap rate on the $75 million A1 tranche of National ABS Trust 2012-1M, which has an expected weighted average life of 0.2 years.

Pricing on the $295 million A2 tranche, which has a weighted average life of 1.6 years, is 150 basis points over the swap...