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Resimac completes non-conforming RMBS issue

29 October 2012 5:20PM
Lender Resimac priced an issue of non-conforming residential mortgage-backed securities on Friday, making it the third lender to issue non-conforming or non-prime securities this year.Resimac raised A$300 million from the issue, Resimac Bastille Series 2012-1NC. It will pay 165 basis points over the one-month bank bill swap rate on the $208.2 million A1 tranche, which has a weighted average life of 1.8 years and an AAA rating.Pricing on the $34.8 million A2 tranche, with a weighted average life of 3.7 years and an AAA rating, was 230 basis points over the swap rate.Pricing on the $27 million B tranche, which has a weighted average life of 3.7 years and an AA rating, was 325 basis points over swap.Pricing on the other five tranches was not disclosed.Other lenders to issue non-conforming securities this year include Pepper Homeloans, which raised $300 million in May, and Liberty Financial, which raised $300 million in June.Liberty paid 70 basis points over swap for an AAA-rated tranche with a weighted average life of 0.5 years, and 165 basis points over swap for an AAA-rated tranche with a weighted average life of 1.7 years.Pepper paid 85 basis points over swap for an AAA-rated tranche with a weighted average life of 0.5 years, and 185 basis points over swap for an AAA-rated tranche with a weighted average life of 2.2 years.Resimac said in a statement that 12 real money accounts invested in its issue. Deutsche Bank and National Australia Bank acted as joint arrangers and joint lead managers on the transaction.

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