Bluestone secures $450m RMBS

Bluestone has announced it has completed its second residential mortgage-backed security (RMBS) for 2019 with a $450 million Sapphire 22 pricing.

The non-bank lender’s chief executive Campbell Smyth said the momentum the firm gained with a broader investor group in Sapphire 21 has continued in this deal, “with solid support across all tranches from both Australian and offshore investors”.

“The journey the business has been on over the last 18 months has been transformational. We have continued the growth story that made the business such an attractive acquisition opportunity whilst also bolstering our team, systems and processes,” Mr Smyth said.

“It is pleasing to see that both new and repeat investors recognised this change and further embraced the business and Sapphire issuances.”

Bluestone chief financial officer Todd Lawler said: “The market has reacted positively to our change in product mix with this deal holding a higher percentage of prime and near prime loans than previous pools.

“Sapphire 22 continues our plans to offer bonds and collateral that appeal to a broader sector of the global fixed income market. As was the case in the last transaction, Sapphire 22 is Capital Requirements Directives IV compliant.”

Bluestone priced its first securitisation in 2019 in April with a $400 million Sapphire 21 RMBS issuance.

The firm expects Sapphire 23 to occur in the first half of 2020 and advises that their pools will continue to reflect the discipline and active credit philosophy the business has adopted to date.

[Related: Bluestone Mortgages Asia Pacific acquired by US firm]

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.