AMP has tapped five banks to gauge investor appetite for a $500 million residential mortgage backed securities deal.Potential investors were told it would include AMP Bank originated Australian dollar denominated residential mortgage loans. They were told there was room to upsize it beyond the $500 million.Early guidance was for 87 bps to 650 bps above the one-month BBSW.
The senior-most tranche was expected to be rated AAA and was 80 per cent placed. The lowest tranche which wouldn’t be rated and offer the highest spread 650 bps was preplaced. Everything in between would be available to investors, with spreads ranging from 130 bps to 47 bps per the guidance set to potential investors.
Deutsche Bank and Westpac were the co-arrangers. Commonwealth Bank of Australia, Standard Chartered Bank and MUFG were included alongside the duo as joint lead managers.
Bank hybrids not in fashion any more?
you mean residential right?
I'm sure we've been here before.