Bluestone issues $350m Sapphire XXIII 2020-1


Bluestone issues $350m Sapphire XXIII 2020-1

On 30 June, Bluestone priced Sapphire 23, a $350m deal which was its first securitisation for 2020. The transaction is Bluestone’s 30th mortgage-backed issuance and the 23rd under the Sapphire program in Australia.

Todd Lawler, Managing Director – Treasury and Funding at Bluestone said of the deal: “I’m extremely happy with the response this programme received from investors, particularly given the current environment. The strong pricing we achieved reflects the ongoing commitment Bluestone has made to high-quality transactions, and the reputation we have been able to build with investors as a result.”

The Sapphire 23 pool is a very clean non-conforming pool compared to previous Sapphire transactions and the rest of the market with 95% made up of prime and near prime mortgages, reflecting Bluestone’s continuing trend towards cleaner credit originations.

The issuance was fully CRD-IV compliant, with strong interest from domestic and international investors. All tranches were very well bid with some more than 3 times oversubscribed. This meant that Bluestone did not require the AOFM’s support in the primary issuance of the transaction, however we note that the AOFM did support the trade with around $100m of switches to allow additional investor participation.

Bluestone CEO Campbell Smyth said: “We are grateful for the AOFM’s support of this transaction and the RMBS market more broadly. This transaction is a part of our overall funding plan and as Bluestone increases origination activity over the coming months we are optimistic that the market will support another issuance before the end of 2020.”