COMMONWEALTH Bank has created a portfolio of $15.6 billion of residential mortgage-backed securities through its Medallion Trust.
These RMBS will be held by the group and if required, the Class A notes can be used for repurchase agreements with the Reserve Bank of Australia to generate up to an additional $12.25 billion of liquidity for the group.
The deal consists of three tranches, Class A of $A14.97 billion; Class B of $A103 million; and Class C $A577.6 million.
The assets of the trust comprise fixed and variable interest rate mortgage loans originated from the Group’s home loan portfolio and from the portfolio of Homepath Pty Limited, a wholly owned subsidiary.
The Class A notes are expected to be rated AAA by Fitch. The Class B notes are expected to be rated AA by Fitch, the Class C notes are unrated.
Australian Property Journal
