Successful RMBS return for Westpac
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21/12/2009 9:20:00 AM
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Westpac has become the first major banks since the start of the GFC to issue an RMBS transaction.
The bank raised $2bn via RMBS, double the size of its initial target.
Of the $2bn, $1.84bn was priced to yield 130 basis points more than the one-month bank bill swap rate, Bloomberg reported. The bank did not reveal pricing for the other notes.
Stuart Gray, a Sydney-based portfolio manager at Aberdeen Asset Management Plc, told Bloomberg this was not cheap funding for the bank, "but they have so much to do that they need a variety of sources".
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