BoS Australia nets A$1.75 billion in UK guaranteed 2012
On July 17 Bank of Scotland Australia Branch (BoS Australia) (A+/Aa3/AA-) priced its three-year domestic transaction supported by the UK government guarantee, selling a total of A$1.75 billion (US$1.41 billion) of fixed and floating paper at 70 basis points over swap and bank bill swap rate (BBSW) in a deal the issuer says was oversubscribed.
Smaller ADIs looking at bond market as RMBS support nears end
With the end in sight for investment into residential mortgage-backed securities (RMBS) from the Australian Office of Financial Management (AOFM), especially for authorised deposit-taking institution (ADI) issuers, some mortgage originators are increasingly open to sourcing funds in the vanilla bond market while moving away from a traditional reliance on securitised issuance.