Banks have returned to the securitisation market this year, with the RBA’s funding tap turned off, and the latest bank issuer of residential-mortgage-backed securities is AMP Bank.
AMP raised A$500 million through the issue, AMP Progress 2022-1. The A1-S notes, worth $75 million and a weighted average life of 0.3 years, were priced at 87 basis points over the one-month bank bill swap rate.
The A1-L, worth $385 million and with a weighted average life of 3.4 years, were priced at a margin of 130 bps.
The AB notes, worth $18.6 million and with a weighted average life of 5.1 years, were priced at a margin of 190 bps.
The B notes, worth $8.1 million and with a weighted average life of 5.1 years, were priced at a margin of 235 bps. The C and D notes were priced at 260 and 280 bps, and pricing on the E and F notes was not disclosed.
In its most recent Statement on Monetary Policy, the Reserve Bank said spreads on RMBS have risen for both banks and non-banks since the start of the year, likely reflecting increased issuance of bank bonds weighing on demand for RMBS, with investors treating bonds and RMBS as close substitutes.