Members Equity are reported to be heading back to the local debt market, only a month after issuing $100 million November 2017 bonds. However, this time it is to sell some of its mortgages via its SMHL RMBS programme to Australian investors.
The last time it had such a transaction was in July 2015 when it issued $1.5 billion worth of RMBS split among six tranches. The largest Class A1 tranche at that time was worth $1.38 billion and it was priced at 1m BBSW + 95bps.
CBA, Macquarie, NAB and Westpac have been given the nod to drum up some interest in the last week of September. Given how spreads have come in over the last twelve months it will be interesting to see how the pricing comes in for this latest offering.