GMAC to price A$303 mln RMBS at 300 bp-source

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SYDNEY, May 16 (Reuters) - The Australian mortgage unit of
U.S.-based finance company GMAC is likely to price a A$303
million ($286 million) non-conforming residential
mortgage-backed securities (RMBS) debut at 300 basis points
over BBSW, an investor said on Friday.

This would be the highest margin ever paid for a triple A
rated Australian RMBS.

Pricing is seen on Friday and Monday, the investor added.

The Australian RMBS market has been hit hard by the U.S.
subprime mortgage fallout, which has sent funding costs sharply
higher. Earlier this week, Citigroup (C.N: Quote, Profile, Research, Stock Buzz) completed the first
and only Australian RMBS issue this year with a A$500 million
offer. See [nSYD198751].

Citigroup's triple A rated offer paid 145 bp over BBSW,
nine times what the bank paid for a similar issue a year ago.
It is also the highest margin ever paid for an Australian
triple A rated RMBS.

The GMAC offer, which has been in the market for at least
six weeks, has been a particularly hard sell as its U.S. parent
has been struggling with mortgage-related losses. See
[ID:nN08426849].

Non-conforming loans cater to people unable to borrow money
from traditional banks because they fall outside lending
criteria. They usually include the self-employed, recent
immigrants, part-time or casual workers and those with credit
impairment.

Westpac declined to comment.
($1=A$1.06)
(Reporting by Cecile Lefort)