Resimac prices wide of guidance despite AOFM bid

15 May 2011

Australian mortgage lender Resimac priced a A$400m ($423.2m) RMBS deal at the end of last week, its second transaction in less than six months. But despite being a regular issuer in the market, Resimac relied heavy on government support – and the deal ended up closing wider than initial guidance.

The Australian Office of Financial Management, the government debt agency, bought almost half of the deal, taking A$170m of a A$340m A tranche and A$22m of a A$42m AB tranche. But the AOFM’s involvement appeared to have no effect on pricing. Bankers had been pitching the A notes ...

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