NZF have announced a series of Residential Mortgage Backed Securities - each issued with a S&P credit rating and mortgage insurance.

I think this is a very good development. Further, I think this market could develop a nice niche for NZF as the packager and enabler of direct NZ investment into NZ mortgages. There is life (and brains) in the NZ Finance sector! Perhaps those interested in the security of NZ residential property will now be tempted by a financial instrument that collateralises this debt, directly. The Aussie banks have been making out like bandits in this sector - nice to have the opportunity to have a piece of this market ...

NZF Group Limited launches NZD$100 million RMBS's

26 May 2010

(NZF) - NZF Group Limited launches NZD$100 million Residential Mortgages Backed Securities (RMBS).

NZF Group Limited (NZF) would like to announce the launch of its first RMBS, a NZD$100 million NZF Mortgages Series 2010-1 RMBS. This transaction will be the first RMBS issue in New Zealand since late 2007 and will feature a pool of seasoned residential mortgages, all with 100% mortgage insurance cover.

Westpac Institutional Bank is arranging the deal and is the lead manager.

Details of the NZF Mortgages Series 2010-1 RMBS are:

Securities Issue Amount (mil.) Preliminary Rating
Class A1 NZ$87.8 AAA
Class A2 NZ$9.1 AAA
Class B NZ$2.5 AA-
Class C NZ$0.6 N.R.