Recently there has been a flurry of Residential Mortgage Backed Securities transactions. FIIG has been getting its share of the flow of securities and is pleased to present them to our clients
Credit specialist La Trobe Financial last Thursday issued its second RMBS issue, the La Trobe Financial Capital Markets Trust 2015-1 (“LFCMT 2015-1”). Commonwealth Bank of Australia was the Arranger and Lead Manager, while FIIG Securities was appointed Co-Manager, assisting with distribution of the junior portions of the capital structure.
La Trobe Financial was established in 1952. La Trobe Financial is a privately owned non-ADI, funded through banks, wholesale markets and a retail fund. Their total mortgage book in FY2014 was $1.4bn, up 22% from FY2013.
LFCMT 2015-1is La Trobe Financial’s first public RMBS transaction, with a total volume of $250m, across six tranches with $207m of AAA rated notes, $40.15m of notes rated between AA and B and an additional $2.85m of equity which will be retained by La Trobe Financial.
This opportunity allowed FIIG’s investors to target their preferred risk and return profile while investing in a high quality pool backed by Australian residential mortgages.
La Trobe Financial has perhaps the most diversified capital raising program of all non-banks operating in Australia incorporating large term debt facilities from local and international banks, over $900 million dollar retail mortgage investment fund with its Pooled Mortgages Option within that fund independently rated, as well as its complementary RMBS capital markets program.
The notes have an expected call in June 2019 and were well supported by investors.