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Pepper doubles RMBS issue size

Pepper Group has completed its second issue of residential mortgage-backed securities in two months, upsizing the transaction from the initial offer of A$500 million to $1 billion.

The notes, PRS 27, are backed by a mix of prime and non-conforming mortgages. Pricing ranged from 95 basis points over the one-month bank bill swap rate on the A1-s notes and 165 bps over BBSW on the A1-a notes to 800 bps on the E notes.

The AOFM was willing to support the transaction but in the there was plenty of investor demand and it was not an investor, either directly or indirectly.

Pepper treasurer Andrew Twyford said pricing was “well within” the pricing of the previous deal, PRS 26.

 

 

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