I have just been told Rams has completed a series of RMBS...

I have just been told Rams has completed a series of RMBS offerings at prices ranging from 50-52 bp above the 1 month BBSW. This will be announced within 36 hours to the ASX and will end its XCP funding issues.

The effect to RHG FY08 forecast NPAT will be lessened by a 30 bp increase in mortgage rates and will have a net effect of cutting NPAT by around 15m - to something in the low 40m area (depending on loan growth rates).

This is exactly what I have been banging on about all along and will give rams an expected eps greater than 11cps. Once this news is announced I'd expect RHG to go straight to 1.50. I strongly recommend a buy on open if you don't already hold as there are still a few i's to dot and t's to cross so it may not be signed sealed and delivered pre 10am