AXA launches mortgage backed bonds
AXA has launched a new mortgage-based investment vehicle targeting the growing commercial mortgage sector for investors seeking both capital stability and a competitive income stream.
Monday, September 13th 2004, 6:50AM
“We’ve been watching the residential mortgage market very closely for some time now, and, in our opinion, it’s been getting increasingly difficult to source enough high quality home loans for our investors.
“So drawing on AXA’s global brand power and local investment market expertise, we’ve developed Mortgage Backed Bonds to offer investors a new mortgage portfolio opportunity. In terms of investor profile, Mortgage Backed Bonds has an income asset focus, offers a sensible degree of risk and is still tax efficient,” said Stewart.
Mortgage Backed Bonds aims to offer a competitive rate of return, exceeding the 90-day bank bill rate by up to 0.50%, with interest rates being declared monthly in advance.
The September 2004 launch rate for Mortgage Backed Bonds is 6.95% per annum.
“Investor capital is secured by a first ranking charge over assets. And for added investor peace of mind, our mortgage acquisition process is probably amongst the most robust in the market. Indeed, based on our experiences in Australia, AXA’s commercial lending team typically rejects two out of every three loan proposals it receives.”
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