Capital markets

The Resimac funding model, which involves warehousing with bank funders in the short-term and a global securitisation programme for long-term funding, 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 Residential Mortgage-Backed Securities (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. Our144a compliant programme allows us to access stable long-term funding with a broad array of large asset managers, banks and insurers the US capital markets.