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AMP Bank is gearing up to sell $543.5 million in residential mortgage backed securities (RMBS).
The government will not act as a cornerstone investor, however it will buy some of the RMBS issue according to a statement on the Australian Office of Financial Management (AOFM) website.
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It is unclear just how much the government will buy at this stage, however, what is clear is that it will let investors decide the pricing levels.
The offer, called Progress 2010-1 Trust, will be lead managed by Deutsche Bank and Westpac Institutional Bank and is expected to be priced by Friday.
The issue pool includes loans with an average loan-to-value ratio of 66 per cent and an average time since issue, or seasoning, of 26 months.
Low documentation loans make up two per cent of the portfolio.
