AMP Bank began taking indications of interest in a $500 million RMBS deal at 7:30pm on Thursday after Firstmac covered a transaction earlier in the day.
AMP was offering a full-doc, first ranking, prime mortgages pool as the collateral, in Australian dollar with floating and fixed rate tranches. Initial expectation was for $500 million size, with Westpac , Barrenjoey, CBA, Deutsche Bank, MUFG, NAB and SCB as the joint lead managers.Investors would be watching it closely to see where the pricing lands and if AMP has to pay up to get the deal done.
The curiosity about the pricing would also be fuelled by Firstmac’s $500 million RMBS deal priced by Westpac just after lunch.The notices sent out to potential investors after the deal was done and dusted did not disclose the pricing, suggesting it was privately placed but also leaving a question mark on the price.
Investors reckoned it could have priced wider than the spread possible in a deal more broadly marketed. That’s because the issuers wouldn’t have had to pay a big bank syndicate to stitch the deal, leaving more to flow through to the investors. Bets were on an institutional investor like a Japanese bank having bought the safer tranches and a warehouse investor the mezzanine.
co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies.
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