Liberty launches A$700 million equivalent RMBS deal

Monday, 23 April 2018

Liberty Financial (Liberty) launched its residential mortgage-backed securities (RMBS) transaction, Liberty Series 2018-1, on 23 April. Indicative total volume for the transaction is equivalent to A$700 million (US$537.1 million), including the euro-denominated Class A1c notes, which together with Class A1b notes will be equivalent to A$385 million.

Liberty Series 2018-1 indicative price guidance and structure

Class	Indicative volume (m)	Expected rating (Moody's/Fitch)	Credit enhancement (per cent)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1-a	A$70	Aaa/AAA	35	0.2	65-70 area
A1-b	A$ND	Aaa/AAA	35	2.1	125 area
A1-c	€ND	Aaa/AAA	35	2.1	50 area/3m Euribor
A2	A$173.6	Aaa/AAA	10.2	3.5	165 area
B	A$25.9	Aa2/NR	6.5	3.5	190 area
C	A$13.3	A2/NR	4.6	3.5	ND
D	A$7.7	Baa2/NR	3.5	3.5	ND
E	A$9.1	Ba2/NR	2.2	3.5	ND
F	A$2.8	B2/NR	1.8	3.5	ND
G	A$12.6	NR/NR	N/A	4	ND

Source: Commonwealth Bank of Australia 23 April 2018

Commonwealth Bank of Australia is arranging the transaction, which is expected to price on or before 27 April, and leading alongside Bank of America Merrill Lynch, Deutsche Bank, National Australia Bank and Westpac Institutional Bank.