According to Banking Day:
"Commonwealth Bank is working the final weeks of the calendar year hard to drum up new sources of wholesale funding from the domestic market.
Its latest innovation is to market mortgage-backed securities, a rarity from a big bank. And, equally rare, the planned bond will not feature the Australian Office of Financial Management as an investor.
BankWest, a CBA subsidiary, is the entity selling the pool of A$750 million in home loans...though this may be increased if there is sufficient demand. BankWest originated all the loans. Seasoning on the loan pool exceeds two and a half years on average...
The indicative price margins quoted on the current loan pool range from 105 basis points above the one-month swap rate on $358 million in bonds with a weighted life of 1.7 years; 130 bps above swap on a $176 million pool with a life of 2.6 years, and 150 bps on the five-year tranche with $158 million in loans...
Meanwhile, on Wednesday the Australian Credit Union priced its $530 million RMBS deal. The AOFM invested in a $244 million tranche, with an average life of five years at a spread of 120 basis points."
