As the mortgage securitisation market picks up momentum in 2022, it is becoming clear that non-bank lenders will have to pay more for their funds and this may be reflected in loan pricing.
The latest issuer, Resimac, raised A$1 billion with the issue of Resimac Premier Series 2022-1, pricing the $810 million of A2 notes, which have a weighted average life of 2.9 years, at 95 basis points over the one-month bank bill swap rate.
When Resimac issued in December, it paid a margin of 85 bps on $700 million of A2 notes.
The AB notes in the latest deals were priced at 150 bps over BBSW, while in the December transaction the AB notes were priced at a margin of 110 bps.
The deals are not directly comparable. The December issue included short-term Yen notes, while the latest deal was all Australian dollar issuance. But the pricing of comparable tranches does suggest that spreads have widened in the past few months.
Resimac priced the A1 notes in the latest deal, worth $90 million and with a weighted average life of 0.5 years, at 55 bps over BBSW.
The B through to E notes were priced in a range from 175 bps to 450 bps.
Resimac said 20.2 per cent of the issue went to offshore investors and 60.5 per cent of buyers were real money investors.
Last month, Columbus Capital’s Triton 2022-1 issue raised $1.5 billion of funding, in a deal that also saw margins widen compared with the lender’s previous deal.
The A1-MM notes of Columbus Capital Triton 2022-1, worth $320 million and with a weighted average life pf 0.5 years, were priced at 55 basis points over the one-month bank bill swap rate.
The A1-AU notes, worth $725 million and with a weighted average life of three years, were priced at 100 bps over one-month BBSW.
The A1-5Y notes, worth $230 million and with a weighted average life of five years, were priced at 120 bps over BBSW.
When Columbus last priced a Triton issue, last July, the A1-MM notes were priced at a margin of 48 bps, the A1-AU notes were priced at a margin of 70 bps and the A1-5Y notes were priced at a margin of 95 bps.