Australian RMBS issuer Perpetual is in the market with SMHL Securitisation Fund 2011-1 worth A$600 million.
The deal is backed by prime residential MBS secured by first-registered mortgages over Australian residential properties, according to a presale report from Standard & Poor's, which rated the deal's top two tranches.
Part of the offering's credit enhancement, said S&P, is from lenders' mortgage insurance covering 100% of the face value of all loans aside from accrued interest and reasonable costs of enforcement.
S&P said that the three-tranche transaction, which is expected to close this month, has a weighted average loan seasoning of 40.3 months. This is considered high versus other Australian RMBS pools.
In terms of current balance, the rating agency said that 42.1% of the portfolio is greater than three years seasoned. It also mentioned that the deal's weighted average current LTV ratio is comparatively low at 61.1%. Additionally, most of the loans, worth 87.1% of the pool, have an LTV of less than 80%.
