Mortgage-backed securities back in vogue
By
Tim Neary
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18/11/2009 12:00:00 AM
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Bendigo and Adelaide Bank is poised to become the first regional lender to sell residential mortgage backed securities without government assistance since the collapse of Lehman Brothers last September.
The bank is in discussions with fixed-income investors to launch a deal worth more than $500 million, but no pricing guidance has been distributed, reported The Australian Financial Review.
The deal comes as ME Bank yesterday priced a $780 million RMBS transaction - its third without the AOFM sponsorship.
Regional lenders are reconsidering the securitisation market as pricing falls to levels that make economic sense.
For lenders outside of the Big Four, the cost of selling RMBSs has sunk below that of raising funds under the government's wholesale funding guarantee.
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