Liberty launches RMBS deal

Monday, 15 June 2020

Liberty Financial (Liberty) launched its residential mortgage-backed securities (RMBS) deal, Liberty Series 2020-2, on 15 June. The deal has indicative volume of A$500 million (US$339.6 million) but could upsize to A$800 million. Pricing is expected on or before 18 June, according to arranger National Australia Bank, which is also joint lead manager with Bank of America Securities, Commonwealth Bank of Australia, Deutsche Bank and Westpac Institutional Bank.

Liberty Series 2020-2 indicative price guidance and structure

Tranche	Indicative volume (A$m)	Expected rating (M/F)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1a	190	Aaa/AAA	0.9	100 area
A1b	160	Aaa/AAA	2.9	165-170 area
A2	100	Aaa/AAA	2.9	220 area
B	18.5	Aa1/NR	2.9	ND
C	9.5	A2/NR	2.9	ND
D	6	Baa2/NR	2.9	ND
E	5.5	Ba2/NR	2.9	ND
F	2	B2/NR	2.9	ND
G	8.5	NR/NR	3	ND

Source: National Australia Bank 15 June 2020