Normal 0 false false false MicrosoftInternetExplorer4 It was Groundhog Day for the treasury team at Commonwealth Bank on Friday. After going to the securitisation market earlier in the week seeking $750 million of funds through an issue of mortgage-backed securities, the bank closed the deal after raising $2.52 billion.

The last time CBA entered the RMBS market, in February last year, the outcome was almost exactly the same; it launched a deal looking for $750 million and ended up pricing an issue worth $2.53 billion.

The pricing of the latest issue, Medallion Trust Series 2014-1, was also similar to last year's deal.

The bank will pay 80 basis points over the one-month bank bill swap rate on the $1.4 billion A tranche, which has a weighted average life of 2.4 years.

Pricing on the $1 billion A tranche of last year's deal was also 80 bps over swap.

Pricing on the $610 million A2 tranche, which has a weighted average life of 3.5 years, was 90 bps over swap (pricing on the equivalent tranche last year was 88 bps)

The $309 million A3 tranche has a soft-bullet structure, which means it has a fixed coupon and a refinancing date of February 2019. The coupon rate is 4.5 per cent (pricing on the equivalent tranche last year was 4.25 per cent).

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