BankWest has joined the growing number of lenders issuing residential mortgage-backed securities as a way to raise funds.
The Australian Financial Review reports that BankWest is seeking $630m through an RMBS issue, which will take the total number of new issues this year to $4.9bn.
BankWest’s move into the RMBS market comes after Bendigo and Adelaide Bank’s issue was oversubscribed, which encouraged the regional lender to increase its offering to $1.1bn.
The spread on RMBS issues is still relatively high at around 130 basis points over prime but the amounts being securitised are encouraging.
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