Non-bank prices first securitisation of 2019

Investors told they can expect two to three “high-quality” deals per year moving ahead

Non-bank prices first securitisation of 2019


By Madison Utley

A non-bank lender has completed its first securitisation of the year in a transaction that was dubbed the “best to date” by the company’s chief executive.

Bluestone CEO, Campbell Smyth, attributed the $400m Sapphire XXI 2019-1 pricing on 4 April to “a very strong pool, and significant domestic and offshore investor interest.”

“We have proven to the market that the quality of our operations and portfolios are amongst the best in the market, and as a result of this we have seen fantastic interest in this deal,” he added.

According to CFO Todd Lawler, Sapphire XXI is the lender’s first CRD IV-compliant deal and “a significant milestone” for the Sapphire program. He also said that investors should expect two to three high-quality deals from Bluestone per year going forward.

“The Sapphire XXI loan portfolio represents the credit philosophy Bluestone embraces, which has been to proactively consider and manage risk,” said Lawler.

The CFO listed never writing loans over 85% LVR, having limited LVRs on investor and interest-only loans, and not writing in high density apartment buildings as examples of the brand’s “active portfolio management approach.”

“We continue to refine policy to ensure that in two years' time we can be as confident with the decisions we made today as we are now about the decisions made over the last few years,” concluded Lawler.

Bluestone expects Sapphire XXII to come in Q3.

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