BOQ starts marketing Series 2018-1 REDS RMBS transaction

Wednesday, 16 May 2018

On 16 May, Bank of Queensland (BOQ) began taking indications of interest for its Series 2018-1 REDS Trust residential mortgage-backed securities (RMBS) transaction. Indicative total volume for the deal, expected to launch 21 May, is A$500 million (US$373.4 million).

Series 2018-1 REDS Trust indicative price guidance and structure

Tranche	Indicative volume (A$m)	Expected ratings (S&P/Fitch)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1	460	AAA/AAA	2.8	102-105 area
A2	13	AAA/AAA	6.1	115-120 area
AB	4.7	AAA/NR	6.1	145-155 area
B	8.9	AA/NR	6.1	165-175 area
C	6.7	A/NR	6.1	240-260 area
D	3.1	BBB/NR	6.1	330-350 area
E	3.6	NR/NR	6.1	590

Source: National Australia Bank 16 May 2018

National Australia Bank (NAB) is arranging the transaction and is sole lead manager for Class A2, Class AB, Class B, Class C, Class D and Class E notes. Commonwealth Bank of Australia, NAB, SMBC Nikko and Westpac Institutional Bank are joint lead managers for the Class A1 notes.