Pepper Residential Securities Program
Pepper has a well-established Term securitisation program developed over the past 12 years, supported by Australian and international institutional investors. Term securitisations are used to refinance drawings under warehouse facilities.
The emergence of the non-conforming RMBS market in Australia presents an interesting diversification play for traditional prime RMBS investors both here and overseas, and a higher-yielding investment alternative.
With concerns regarding the exposure of prime Aussie RMBS deals to the credit standing of mortgage insurers, the non-conforming issues present an alternative by which to diversify such risk away. The Australian non-conforming RMBS market is helping to facilitate the development of a deeper sub-investment grade debt market, by continuing to provide deal structures with greater variation in bond classes, including lower-rated securities. This gives investors access to an alternative, higher-yielding investment class.