Australia

Macquarie Securitisation Limited celebrated Australia Day by launching a roadshow for what may be the first Australian RMBS to price in 2015, well over a month since the last supply from the country.

Covered bond issuers from outside the Eurozone launched deals this week denominated in sterling and Australian dollars. But a bigger proportion were from the Eurozone where borrowers launched deals in the single currency in maturities that ranged from four to 20 years. The transaction were priced generously and enjoyed a solid reception, with central banks taking a back seat.

Bank of Nova Scotia has returned to the covered bond market for a second time this week, mandating leads for the first Australian dollar covered bond deal of the year.

Westpac was set to price the first euro-denominated covered bond of the year on Thursday in a move that is likely breathe confidence into the market, following a disappointing end to 2014.

Australian fleet lease firm FleetPartners priced its third securitization since 2010 this week, offering investors a diversification opportunity after weeks of RMBS dominated issuance. However, Westpac is ready to redress the balance with its second RMBS of the year.

While European ABS issuance was impatiently waiting for the entrance of the European Central Bank this week, Australian issuance was ploughing on with another two banks having mandated for RMBS transactions.

A deterioration in the quality of new collateral in an environment of low interest rates and buoyant house prices will be no barrier to continued strong performance from Australian RMBS and other ABS, according to Moody’s.

Australian mortgage lender Liberty Financial printed its second RMBS transaction of the year on Friday, with the non-conforming portion of its portfolio ensuring the deal was priced slightly wider than other recent RMBS trades contributing to a A$3bn-plus run of Aussie dollar supply.

Liberty Financial has been marketing its second Australian RMBS transaction of the year this week, looking to place up to A$400m of bonds in a market that has absorbed over A$3bn of supply in the last two weeks.

Australia and New Zealand Bank mandated joint leads for its second euro covered bond of the year and the fifth Australian benchmark in euros this year. The deal is expected to be launched on Wednesday, and should offer a premium relative to its own curve and a much larger premium to deals from eurozone borrowers.

Macquarie Leasing has maintained its price guidance on the single tranche of notes it has offered investors in its latest SMART auto and equipment ABS, with the Class As more than twice covered by indications of interest.

Bluestone Group has securitized a second diverse pool of pre-crisis Australian mortgage loans, offering investors eight tranches of bonds rated as low as single-B, while Queensland-based building society Wide Bay Australia is yet to price its prime RMBS in a busy week for the Australian dollar market.