Non-bank prices non-conforming RMBS

by BN07 May 2012

A non-conforming lender has capitalised on local and international demand for exposure to the Australian mortgage sector, pricing a $300m mortgage issue late last week.

Pepper's non-conforming issue, it's first for 2012 and the first non-conforming RMBS since mid-2011, was supported by 11 accounts, including 9 domestic and 2 international.

Pepper said the deal largely came about on the back of interest stemming from previous RMBS deals, as well as being supported by increased origination volumes over the last 12 months.

"This is a strong endorsement of Pepper’s business model, the credit quality of the underlying loan
collateral and our expertise as a specialist mortgage servicer”, said Pepper's group treasurer Todd Lawler.

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