FirstMac able to finance construction loans

FirstMac said it undertook the first securitisation of home loans where some of the loans are for construction and renovations. The bonds to be issued will pay a coupon rate of 0.23 per cent over the bank bill swap rate for the senior tranche of $353 million in AAA-rated bonds, which compares favourably to the 0.18 per cent spread for securitisations of mortgage-backed securities for conventional loans.