AMP Bank’s latest issue of residential mortgage-backed securities was priced at much narrower spreads than the bank’s previous transaction in March, reflecting less RMBS issuance this year and continuing strong investor demand. AMP raised A$750 million, upsizing the transaction, Progress 2023-2 Trust, from $500 million at launch. Pricing on the A notes, worth $690 million and with a weighted average life of three years, was 115 basis points over the one-month bank bill swap rate. The AB notes, worth $30.9 million and with a life of 5.3 years, were priced at a margin of 180 bps. The B notes, worth $11.3 million and with a life of 5.3 years, were priced at a margin of 280 bps. Pricing of the C, D, E and F notes was in a range from 330 bps to 660 bps. The margins on the March transaction, Progress 2023-1 Trust, were 145 bps on the A notes, 240 bps on the AB notes and 310 bps on the B notes. AMP group treasurer and the chief executive of AMP Bank, Jason Bounassif, said there were 31 investors, about one-third of whom were offshore investors and 37 per cent real money investors. Back in March, the banking world was rocked by the failure of Silicon Valley Bank and Credit Suisse, and spreads on securitisations and bond issues widened to reflect higher risk in the market. But those events did not have a wider impact on banking industry and markets settled down.  In recent months RMBS issuance has come down from levels in 2022 and 2021 but investor demand has remained strong, putting downward pressure on margins. Another factor that has helped issuers is the solid performance of mortgage portfolios. Arrears and defaults have increased only modestly.