The RESIMAC funding model which involves warehousing with bank funders in the short-term and securitisation in the medium-term continues to operate effectively for our business.
RESIMAC understands the key role of investors as the term funding source for the business. We therefore write every loan with the end investor in mind.
The wholesale funding programme has been expanded and developed across new asset classes and jurisdictions with the same underlying premise that the asset is underwritten with the end investor in mind.
In this vein we commenced businesses in Specialist Lending in 2007 and New Zealand in 2012. Our analysis of securitisation funding also played a part in our purchases of the RHG portfolio in January 2014 and a small UK portfolio in late 2014.
We maintain relationships with a diverse array of institutional financiers and possess excess capacity in our short-term funding capabilities that support production opportunities while also mitigate credit market risk.
RESIMAC has met all the first-occurring call options on its deals and has been a frequent issuer of RMBS since 1987.
Our approach to the funding environment continues to be dynamic, constantly looking to source new investors and diversifying to new investor segments. Our recent transactions have sourced investors from the US, Europe and Asia.
Given the scale of the US market, transactions into the US allow us to achieve size and increase the diversification of our funding. We have now completed five 144a compliant transactions in the US. The most recent deal tapping the US term market for the first time since the crisis, successfully re-opened our funding program to a new pool of investors. This transaction being the first RMBS issue out of Australia into term US markets was awarded Asiamoney Structured Deal of the year in 2014.
In 2014, we successfully completed RMBS issuance in all our business lines – in effect, issuing securities backed by New Zealand, RHG and United Kingdom collateral. The NZ RMBS was the first RMBS issued in the NZ markets since 2010. Reflecting stronger demand conditions, this transaction sold further down the capital structure than in earlier years. RHG represented the first 100% non RESIMAC originated assets under a RESIMAC program supporting the premise for funding acquired as well as originated assets.
Combining such clarity of focus with twin competencies of a conservative and high quality credit risk assessment capability and a premium collections and loan servicing platform completes RESIMAC’s differentiation from all competitors. RESIMAC’s transparency with respect to our operations, indeed even our processes, is geared to encourage investor confidence.