Rates Round Up

CBS looks to set up $100 mln securitisation programme
Canterbury Building Society, which is investigating joining forces with Marac and Southern Cross Building Society to form a South Island bank, has flagged a $100 million securitisation programme as a way for it to diversify its funding.

CBS will sell residential loans to an entity called The Warehouse Trust, using its to sell different classes of debt notes to selected institutions.

Westpac will provide facilities for the securitisation programme to go ahead.

It will be the second launch of mortgage-backed securities in almost three years after NZF Group put out a programme in a May.