BOQ launches Series 2018-1 REDS RMBS transaction

Monday, 21 May 2018

Bank of Queensland (BOQ) launched its Series 2018-1 REDS Trust residential mortgage-backed securities (RMBS) transaction on 21 May. The deal has a minimum volume of A$500 million (US$375.8 million) and is expected to price on or before 25 May.

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	165-170 area
C	6.7	A/NR	6.1	240 area
D	3.1	BBB/NR	6.1	330 area
E	3.6	NR/NR	6.1	590 area

Source: National Australia Bank 21 May 2018

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