As part of market revival due to the recent US sub-prime mortgage crisis, Australia-based Macquarie Bank intends to sell mortgage-backed bonds in two months' time with increased returns, reported Bloomberg.
The report cited sources close to the deal as saying that the bank plans to sell bonds worth A$300 million with an average life of 2.8 years to people with good credit histories at an extra yield of 38 basis points more than the one-month bank bill swap rate.
The report quoted Craig Saalmann, a credit strategist at JPMorgan Chase in Sydney, as saying: Macquarie is sounding out investors and trying to re-open this market.
The sale of bonds by Macquarie follows the recent failure of Members Equity Bank to sell A$500 million worth mortgage-backed bonds due to lack of appropriate buyers. Macquarie itself sold mortgage-backed bonds worth A$750 million in June 2007.
A spokesman at Macquarie Bank declined to comment regarding the sale of bonds, the report said.