Liberty prices $2 billion RMBS issue and largest transaction to date

25/2/2026

Liberty Financial Pty Ltd (Liberty) has priced a $2 billion Liberty Series 2026-1 RMBS issue, its 56th term securitisation issue of securities backed by a portfolio of residential mortgages. The Liberty Series 2026-1 Trust is Liberty’s 102nd capital markets issue and largest ever.

As a result of strong investor demand across all offered tranches, the transaction was upsized from a launch volume of A$1billion to A$2 billion. BofA Securities is the sole Arranger and a Joint Lead Manager along with, Commonwealth Bank of Australia, Deutsche Bank, National Australia Bank, SMBC Nikko Capital Markets and Westpac Banking Corporation. The transaction comprises A$2 billion of notes rated by Moody’s Investors Service (Moody’s) and Fitch Ratings (AAA notes only).

  • The A$600 million Class A1a notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 0.4 years, priced at a margin of 70 basis points over one-month BBSW.

  • The A$1,100 million Class A1b notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 2.6 years, priced at a margin of 100 basis points over one-month BBSW.

  • The A$216 million Class A2 notes to be rated Aaa(sf)/AAAsf with a weighted average life of about 3.2 years, priced at a margin of 115 basis points over one-month BBSW.

The pricing of the Class B, C, D, E and F notes expected to be rated Aa2(sf), A2(sf), Baa2(sf), Ba2(sf) and B2(sf) is not disclosed.

The issue consists of a pool of residential mortgages with a weighted average loan-to-value ratio of 61% and is seasoned at 25 months. The Liberty Series 2026-1 transaction will settle on 10 March 2026.

Peter Riedel, Chief Financial Officer at Liberty, said: “Liberty is a leader in providing households and small businesses with the freedom to choose from a wide range of products and services to meet their financial needs. We are humbled to announce our largest capital markets issue and grateful for the support investors have extended to our business from our very first public term issuance in 1999.”

Liberty has a rating of “STRONG” from Standard & Poor’s for the servicing of commercial mortgages as well as prime and non-prime residential mortgages and auto loans. Liberty is also Australia’s only investment-grade rated non-bank issuer (BBB, outlook stable by S&P) and one of only a few lenders with an unblemished capital markets record with no ratings downgrades or charge-offs ever experienced by its securitisation program.