Macquarie boosts RMBS with state support

16 Apr 2011

Australian bank Macquarie priced a A$750m ($789.8m) residential mortgage-backed securitisation on Friday that was increased from A$500m to meet investor demand. But despite strong appetite for the issuer’s top tranche, Macquarie relied on government support to close the deal.

Some 15 investors bought the A$525m A1 note that priced at 100bp over the one-month bank bill swap rate. But the Australian Office of Financial Management was asked to buy a A$157.5m A2 piece that had a longer weighted average life and was less attractive to investors.

The AOFM ...

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