Demand demonstrates confidence, says non-bank lender
A residential mortgage backed security issued by La Trobe Financial has been met with strong demand from investors, demonstrating ongoing confidence in the sector.
Australian residential mortgage backed securities (RMBS) remain an attractive proposition for global investors, the non-bank said.
La Trobe Financial said its fourteenth RMBS deal was originally a partially pre-placed $500m RMBS. Following strong investor demand, it was upsized to $750m.
La Trobe Financial treasurer Paul Brown (pictured above left) said the pricing and order book was a “strong endorsement” of its high quality assets.
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The result was also a reflection of La Trobe Financial’s expertise and its consistent track record as Australia’s leading credit asset manager and credit specialist, he said.
"Australian RMBS remains an attractive proposition for global investors and demonstrates ongoing confidence in the sector and indeed the quality of La Trobe Financial’s lending approach," Brown said.
Despite periods of market volatility, La Trobe Financial director and head of distribution Michelle Bannister (pictured above right) said diversity of funding gave the non-bank lender the resilience to remain in the market for its borrowers and broker partners.
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“Through the uncertainty ahead, it will be more important for borrowers and brokers to have confidence in strong, well-funded lenders,” Bannister said. “The size and track-record of the La Trobe Financial $8.5bn credit fund, plus $7bn institutional and RMBS program helps deliver on this through our unique position in the category.”
La Trobe Financial said the RMBS supplements its “unique and diverse” funding program. It includes institutional mandates and Australia’s largest credit fund, at $8.5bn, taking total assets under management to $15.5bn.
The RMBS deal is to due settle in mid-November.