Bluestone Reaches $1.1bn In RMBS Transactions


Bluestone has priced our second RMBS transaction of the year, bringing our total to $1.1 billion over the last 15 months.

Bluestone has priced our 19th residential mortgage backed security issuance under the Sapphire program. The transaction is the second of the year for us, having issued the first non-bank deal of 2018 in February. Sapphire 19 (2018-2) brings our total issuance to $1.1bn over the last 15 months.

In a softer market we received interest from existing and new investors, with investors paying particular attention to the recent acquisition of our APAC business by certain affiliates of Cerberus Capital Management, L.P, a global leader in alternative investing. Since returning to origination in 2013, we have been focused on working with brokers and investors to rebuild the Bluestone brand. The Cerberus acquisition has completed the picture for our business and a lot of bond investors, adding the financial backing we needed to compliment the robust business we have rebuilt.

We’ve recently expanded our product set to include more near prime borrowers alongside the traditional non-conforming borrowers who the business has traditionally worked with. Bluestone recognises a real opportunity in the near prime space, an area that has existed for some time but has only recently evolved as a result of the pull back by the major lenders. This has created the opportunity for us to capture the group of borrowers who would have previously been written by the banks. As a result, we expect to see the average borrower characteristics to improve in the Sapphire pools. Our last transaction, Sapphire 18 (2018-1), consisted of around 10% near prime borrowers whereas this transaction is around 25%. Going forward we expect this number to increase above 50% of our originations.

In the future, we expect to our expand our business into additional lending markets, further entrenching ourselves as one of Australia and New Zealand’s leading non-bank lenders. With significant aspirations for the business, we will continue growing with a focus of building a great team. This has been the backbone of what we have done and will continue do in the future.