Medallion Series 2019-1: 07 December 2019

Another RMBS transaction under the Medallion name from originator The Commonwealth Bank of Australia, and this will be the first in 2019 under the series.

The assets of the Series Trust will include the following: principal payments paid or payable on the mortgage loans at any time from and after the cut-off date; interest payments and fees payable on the mortgage loans before or after the cut-off date (other than the Accrued Interest Adjustment, which is to be paid on the first distribution date to Commonwealth Bank of Australia as Seller of the mortgage loans); rights under the mortgages in relation to the mortgage loans.

At the cut-off date (18 November 2019) the pool consisted of 4,883 fixed and variable rate mortgage loans with an average loan balance of A$307,188 and a maximum of A$991,100. Loan purpose (by current balances): owner-occupied 76.35%, investment 23.65%. Loan type: principal and interest 83.17%, interest only 16.83%. Mortgage insurer provider: no insurance 82.80%, Genworth 17.20%. The WA current LTV is 59.52% (original LTV was 69.55%) and the WA seasoning is 44 months. Geographical concentration (by current balances): Metro-Victoria 25.75%, Metro-NSW 23.71%, Metro-Queensland 10.44% and Non Metro-NSW 8.62%.

EU Risk Retention: Notwithstanding that it is not an EU Obliged Entity, on the Closing Date and afterwards for so long as any Notes remain outstanding, Commonwealth Bank of Australia will, as an “originator”, retain and hold a material net economic interest of not less than 5% in this securitisation transaction in accordance with the text of Article 6(1) of the EU Securitisation Regulation. As at the Closing Date, the EU Retention will be in the form of a retained interest in at least 100 randomly selected exposures equivalent (in total) to no less than 5% of the nominal value of the securitised exposures (where such non-securitised exposures would otherwise have been included in this securitisation transaction) in accordance with Article 6(3)(c) of the EU Securitisation Regulation.

Compare/contrast: Medallion 2018-1, Kingfisher Trust 2019-1