Bluestone Completes Second RMBS Transaction of 2019


Bluestone has completed its second RMBS transaction of 2019 continuing the strong interest from domestic and international investors.

Bluestone has completed their second securitisation for 2019 with $450m Sapphire 22 pricing on 26 September. The transaction is Bluestone’s 29th mortgage-backed issuance.

“We were very happy with the level of investor engagement on this deal” commented Campbell Smyth, CEO of Bluestone.  “The momentum we 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”

Bluestone CFO Todd Lawler added, “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 CRD IV compliant”

Smyth continued, “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.  It is pleasing to see that both new and repeat investors recognised this change and further embraced the business and Sapphire issuances. We look forward to continuing to originate and securise high-quality loan pools that continue to be attractive to a diverse range of local and international investors”.

Bluestone expects Sapphire 23 to occur in the first half of 2020 and advises that their pools will continue to reflect the disciplined and active credit philosophy the business has embraced to date.