AMP Bank internally securitises A$2.5 bln RMBS

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SYDNEY, Oct 23 (Reuters) - Australia's AMP Bank, a unit of
fund manager AMP Ltd (AMP.AX) has internally securitised A$2.5
billion ($1.68 billion) of residential mortgage-backed
securities (RMBS), it said on Thursday.

Over A$100 billion worth of mortgages have been securitised
this year, mostly by major and regional banks, and more are
expected to take advantage of new central bank rules that made
mortgage securities eligible for repurchase agreements. For a
list, double click on [ID:nSYD228786].

Last year, the RBA widened the type of assets it would
accept as collateral at its repo operations, including certain
types of RMBS, to promote liquidity in financial markets.

Central banks typically buy securities to temporarily raise
the amount of money in the banking system and to manage money
market rates.

Until earlier this month, internal securitisation was for
emergency only, but the Reserve Bank of Australia lifted that
condition and now accepts those securities in exchange of cash.

The offer, called Progress 2008-1R Trust, has two tranches:

--A$2.465 billion class A notes, rated AAA by Fitch;

--A$35 million class B notes, rated AA- by S&P.
($1=1.49 Australian Dollars)
(Reporting by Cecile Lefort, editing by James Regan)