Pepper starts marketing I-Prime 2018-1 RMBS deal

Thursday, 17 May 2018

On 17 May, Pepper Group (Pepper) began taking indications of interest for its I-Prime 2018-1 Trust residential mortgage-backed securities (RMBS) transaction. The deal has indicative total volume of A$400 million (US$300.9 million) and is expected to launch in the week commencing 21 May.

Tranche	Indicative volume (A$m)	Expected ratings (S&P)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1-S	120	AAA	0.8	70 area
A1-L	200	AAA	3	115-120 area
A2	48	AAA	3.7	160-170 area
B	10.6	AA	3.7	high 100s area
C	8	A	3.7	high 200s area
D	5.4	BBB	3.7	high 300s area
E	3.6	BB	3.7	high 500s area
F	2.2	B	3.5	high 600s area
G	2.2	NR	4	ND

Source: National Australia Bank 17 May 2018

National Australia Bank is arranging the transcation, as well as leading alongside Commonwealth Bank of Australia and Westpac Institutional Bank.