NAB pushes bullet tranches with increased securitisation

25 May 2011

Investors have flocked to National Australia Bank’s first residential mortgage-backed securitisation in more than four years, helping the issuer increase its deal from A$750m to A$1bn ($1.06bn) — and demonstrating the strong demand for fixed rate, soft bullet tranches.

NAB pitched banks with two ‘A’ tranches — one fixed, one floating — last week. The floating rate tranche had a three year weighted average life, and the soft bullet fixed rate tranche had a scheduled maturity after three years. That allowed bankers directly to compare demand for ...

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