AFG starts marketing prime RMBS deal

Wednesday, 06 June 2018

On 6 June, Australian Finance Group (AFG) began taking indications of interest for its prime residential mortgage-backed securities (RMBS) transaction, AFG 2018-1 Trust. The potential deal has an indicative total volume of A$350 million (US$268 million). ANZ is arranging the transaction and leading alongside National Australia Bank.

AFG 2018-1 Trust

Tranche	Indicative volume (A$m)	Expected ratings (S&P/Fitch)	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1	65	AAA/AAA	0.4	65-70 area
A2	250	AAA/AAA	3	117 area
A3	14.7	AAA/NR	4.2	150 area
AB	8.75	AAA/NR	4.2	170 area
B	5.075	AA/NR	4.2	high 100s area
C	3.675	A/NR	4.2	high 200s area
D	1.225	BBB/NR	4.2	high 300s area
E	0.875	BB/NR	4.2	high 500s area
F	0.7	NR/NR	5	ND

Source: ANZ 6 June 2018