Bluestone issues second RMBS transaction in 2 months


Bluestone issues second RMBS transaction in 2 months

Today, 3 September, Bluestone is proud to announce the successful issuance of Sapphire 24, its second post-pandemic RMBS transaction of 2020. The $350m deal marks Bluestone’s 31st mortgage-backed issuance and the 24th under the Sapphire program in Australia.

Todd Lawler, Managing Director – Treasury and Funding at Bluestone said of the deal: “We couldn’t be happier with the result of this transaction. Investor feedback was particularly favourable about the strong credit quality of the underlying pool and our proactive risk management surrounding the COVID-19 pandemic.”

The fully CRD-IV compliant Sapphire 24 pool consists of 92.4% Prime and Near Prime loans, reflecting Bluestone’s ongoing focus on clear credit loans. Strong domestic and offshore interest from investors means the transaction was almost 3 times oversubscribed, with some tranches receiving more than 4 times coverage. In total, 22 investors bid in the trade with 42% of bids coming from offshore. No support from AOFM was required for the transaction.

With this second issuance in just over 2 months, Bluestone is well on its path to increase origination activity for the remainder of 2020. Bluestone CEO Campbell Smyth said: “In a shifting environment, we have worked hard to ensure that we sustainably grow our loan portfolio and continuously improve the experience of our customers and brokers. A solid funding base is absolutely fundamental to these efforts, and we are extremely pleased with both the enthusiastic response from our investors and the significant warehouse headroom the transaction has provided.”