Also these low doc loans...banks are gonna regret these and Im amazed some are still issuing them. For those who dont know what a low doc loan is basically it means you dont have to provide much information eg earnings etc to get your loans so anyone can almost borrow anything helping keeping the prices stable but making the market a lot more volatile on the downside
Adelaide Bank announces second Lo Doc transaction 12:41, Friday, 6 May 2005
Sydney - Friday - May 6: (RWE Aust Business News) - Adelaide Bank Ltd (ASX code: ADB) has announced the launch of a 100 per cent Lo Doc residential mortgage backed securitisation transaction, its second dedicated Lo Doc transaction and the 11th domestic issue under the TORRENS program. The $750 million issue follows strong mortgage lending growth by the bank this year. Adelaide Bank's treasurer, Richard O'Callaghan, said the bank's first 100 per cent Lo Doc securitisation in June 2004, with a $1 billion transaction, proved highly successful. "Our last transaction in March 2005 was a full documentation deal, and investor feedback indicated they appreciate our current strategy of segregated pools," he said. "This offering of 100 per cent Lo Doc loans is the continuation of that strategy." The $750 million Series 2005-2 (S) TORRENS Trust issue comprises: * A $717.5 million floating rate note issue with an expected average life of 2.4 years, where coupon is one month BBSW plus a margin and is rated AAA/Aaa/AAA by Standard & Poor's, Moody's and Fitch Ratings. * A $32.5 million floating rate note issue with an expected average life of five years, where coupon is one month BBSW plus a margin and is rated AA/Aa2/AA by Standard & Poor's, Moody's and Fitch Ratings. Joint Lead Managers on the transaction are ABN AMRO and Deutsche Bank AG. Shares of Adelaide Bank fell 5c to $10.18 today. ENDS
