Non-bank commercial and residential mortgage lender Thinktank has announced the completion of a $1 billion residential mortgage-backed securities (RMBS) transaction.
The deal is the company’s third capital markets transaction in 2025, as assets under management approach $8 billion.
“The transaction represents a great milestone for Thinktank, while reflecting the health of the market generally and has been underscored by keen participation from both existing investors, while also welcoming a number of new investors into our RMBS program,” Thinktank chief executive Jonathan Street said.
The issuance concludes the company’s planned RMBS issuance for the fourth quarter of 2025. The firm expects to maintain a similar issuance pattern in 2026, with two RMBS deals and one commercial mortgage-backed securities (CMBS) transaction spread across the year. Thinktank now has a total of $11 billion in RMBS and CMBS formats across 21 transactions.
“This transaction is a testament to the enduring strength of our business and the trust our investors continue to place in us. We remain very focused on pursuing disciplined growth, supporting brokers and customers across both the residential and commercial sectors, and continuing to deliver long-term value to the market,” Street explained.
The transaction attracted interest from 22 institutional investors, split almost evenly between domestic (53 per cent) and offshore participants (47 per cent).
The pool represented 1434 first mortgage loans with an average size of $697,343. The majority, or 89.4 per cent, are in major metropolitan areas, with the remainder in urbanised non-metro locations.
The notes were rated AAA by Standard and Poor’s and Fitch. The Class A1-S Notes were set at a margin of 0.70 per cent above the 30-day Bank Bill Swap Rate, the Class A1-L Notes were priced at 1 per cent above the 30-day Bank Bill Swap Rate, while the Class A2 Notes were priced at 1.1 per cent above the 30-day Bank Bill Swap Rate.
