Bluestone Prices A$400m Sapphire XXI 2019-1


Bluestone completed its first RMBS transaction of 2019, generating strong interest by domestic and international investors.

Bluestone has completed their first securitisation for 2019 with the $400m Sapphire XXI 2019-1 pricing on 4 April. The transaction is Bluestone’s 28th mortgage-backed issuance and the 21st under the Sapphire program in Australia.

“The transaction was our best to date, with a very strong pool and significant domestic and offshore investor interest” commented Campbell Smyth, CEO of Bluestone.  “We have proven to the market that the quality of our operations and portfolios are amongst the best in the market, and as a result of this we have seen fantastic interest in this deal.”

Bluestone CFO Todd Lawler added, “The efforts we have made to engage with investors and tell them the Bluestone story has been reflected in the strong bids in this deal. Sapphire XXI is our first CRD IV-compliant deal and a significant milestone for the Sapphire program. Going forward, investors should expect this to be the norm from Bluestone with 2-3 high-quality deals per year.”

Smyth continued, “The Sapphire XXI loan portfolio represents the credit philosophy Bluestone embraces, which has been to proactively consider and manage risk. For example, the maximum LVR in the pool is 85%, and since returning in 2013 we have never written a loan over 85% LVR, something that helps secure our stability in the current declining market. We have also limited LVRs on investor and interest-only loans and have not written in high density apartment buildings. These are just some examples of our active portfolio management approach. We continue to refine policy to ensure that in two years’ time we can be as confident with the decisions we made today as we are now about the decisions made over the last few years.

Bluestone expects Sapphire XXII to come in Q3 and advises that their pools will continue to reflect the disciplined and active credit philosophy the business has embraced to date.