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