Bendigo taps into new class
(9 December 2010 – Australia) Bendigo and Adelaide Bank have launched A$775 million securitisation issue, designed to attract a new class of institutional investors.
The issue is designed to create more funding in a dry market, where traditional securitisation investors remain cautious about the state of the market following the global financial crisis.
Smaller banks have recently called for the federal government to expand its A$16 billion investment program in residential mortgage backed securities to aid in boosting funding.
The Treasurer, Wayne Swan, is expected to announce the detail of his first round of reforms to boost competition in the banking sector in coming days.
The latest Bendigo RMBS issue includes securities that have characteristics of traditional bonds. While this structure initially adds expense to the issue, it allows fixed income institutional investors that track benchmark bond indices to participate in the transaction.
The issue has been arranged and managed by National Australia Bank.
'A crucial step in the recovery of the Australian RMBS market is to entice new investors and broaden the investor base,'' NAB's head of securitisation, John Barry, said.
The transaction is expected to draw support from the Australian Office of Financial Management.
Smaller banks have recently called for the federal government to expand its A$16 billion investment program in residential mortgage backed securities to aid in boosting funding.
The Treasurer, Wayne Swan, is expected to announce the detail of his first round of reforms to boost competition in the banking sector in coming days.
The latest Bendigo RMBS issue includes securities that have characteristics of traditional bonds. While this structure initially adds expense to the issue, it allows fixed income institutional investors that track benchmark bond indices to participate in the transaction.
The issue has been arranged and managed by National Australia Bank.
'A crucial step in the recovery of the Australian RMBS market is to entice new investors and broaden the investor base,'' NAB's head of securitisation, John Barry, said.
The transaction is expected to draw support from the Australian Office of Financial Management.
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