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Westpac has successfully priced $2 billion of residential mortgage backed securities last Friday.
The pricing represents the first issue by a major lender in a domestic market since the onset of the global financial crisis in May 2007.
With liquidity remaining a major concern, the move by Westpac bodes well for other lenders that plan to go to market in the new year.
According to an article in Dow Jones, the $2 billion RMBS is double what the major bank had originally planned and signals a return of confidence to Australian securitisation market.
So far this year smaller or regional banks in Australia have raised over $3.0 billion through RMBS sales without government assistance.
The notes were priced at 1.3 percentage points over the swap rate and more than 10,000 mortgages were bundled into the deal.
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