Big Four set sights on RMBS market

By Tim Neary | 20/01/2010 12:00:00 AM | 0 comments

The return of the majors to the local securitisation markets will provide a boost as it continues to recover from the effects of the GFC.

Westpac and the CBA are likely to be the biggest users of RMBS in the period ahead, according to a report in AFR.

Both need to raise as much as $45 billion a year in funding.  

The Big Four had been absent from the securitisation market since mid-2007 until Westpac sold $2 billion of mortgage backed bonds last December.

PIMCO head of Australian portfolio management, Robert Mead said that as much as 10% - or $15 billion - of the funding task facing the local banking sector could be in the form of RMBS.

AMP is expected to price the first deal of the year on Friday - a $543.5 million residential mortgage-backed bond issue.

More of the same is expected from regional bank issuers such as ME Bank and BoQ. 

Of the majors NAB is another candidate likely to draw on the market, while ANZ has traditionally sold the least amount of mortgage-backed bonds.

Related Stories 

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

Successful RMBS return for Westpac - Westpac has become the first major banks since the start of the GFC to issue an RMBS transaction.

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