AMP RMBS doubles in pricing

By Andrea Lavigne | 25/01/2010 8:40:00 AM | 1 comments

The first Australian RMBS of 2010 received strong investor interest, pricing at $1bn - almost twice the expected $543.5m.

Even more significant for the securitisation market, is that it did so without the government acting as a cornerstone investor in Class A Notes. The AOFM co-participated with private investment in Class AB Notes, purchasing $36m of this class.

AMP's Progress 2010-1 Trust RMBS involved 18 investors with 40% of notes sold to European investors.

"The Progress transaction result was very pleasing. The transaction was upsized to 18 investors at a pricing margin of BBSW +130 bpts - a tighter margin than price guidance of BBSW +135 bpts area. Furthermore it was achieved without the need for significant government support," said AMP Bank Limited Treasurer, Guy Morgan.
 
Deutsche Bank Head of New Issue, Credit Solutions Group, John Claudianos said: "We are seeing a significant move toward normality in RMBS primary issuance with more investors and confidence building with every transaction that comes to market. The Progress transaction is a significant step in the development of the RMBS market for 2010."

Deutsche Bank and Westpac were Joint Lead Managers.

Related stories:

AMP to sell $543.5m RMBS - AMP Bank launched a $543.5m RMBS issue supported by the AOFM.

Latest Comments

Total: 1 comment(s)

Welcome Back Competition on 25 Jan 2010 03:16 PM

This is fantastic news...

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