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In a bid to broaden its overall funding capabilities, La Trobe Financial has priced its first-ever RMBS issue.
The La Trobe Financial Capital Markets Trust 2014-1 (LFCMT 2014-1) has been priced at $102 million, with the Commonwealth Bank acting as lead manager.
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The offering consists of 586 well-seasoned (weighted average seasoning 71.6 months), near prime mortgage-backed securities with an average LVR of 61.6 per cent and an average loan size of $174,084.
La Trobe Financial’s chief investment officer, Paul Wells, said the issue marks an important step forward for the credit specialist and its funding capabilities.
“Supporting historical funding with a capital markets RMBS issuance creates complementary opportunities to strengthen and expand our funding footprint with more investors, both here and globally. This inaugural transaction demonstrates our capabilities to do so.”
According to Ryan Harkness, head of debt capital markets at La Trobe, the strength of the issue is recognition of the credit specialists’ sturdy business model.
“We believe that investor appetite to the transaction is a strong endorsement of our business model, the credit quality of the underlying loan collateral and our expertise as a credit specialist,” he said.
