Bluestone taking indications of interest for Sapphire 2019-1 RMBS deal

Wednesday, 27 March 2019

On 27 March, Bluestone Group (Bluestone) began taking indications of interest for its residential mortgage-backed securities (RMBS) transaction, Sapphire 2019-1 Trust. The potential deal has indicative total volume of A$400 million (US$284.1 million) and is expected to launch and price in the week beginning 1 April.

Sapphire 2019-1 structure and indicative price guidance

Tranche	Indicative volume (A$m)	Expected ratings	Weighted-average life (no. of years)	Indicative price guidance (bp/1m BBSW)
A1S	80	Aaa	0.4	85-90 area
A1L	180	Aaa	2.7	145 area
A2	83.6	Aaa	2.7	225 area
B	30	Aa2	3.7	255 area
C	5.6	A2	3.7	330 area
D	7.2	Baa2	3.7	430 area
E	4.4	Ba2	3.7	low to mid 600s area
F	4.8	B2	2.9	750 area
G	4.4	NR	4	ND

Source: National Australia Bank

National Australia Bank is arranger for the deal, and joint lead manager alongside Commonwealth Bank of Australia, Deutsche Bank and Macquarie Bank.