Barton Securitisation
The Barton Securitisation Program was established by Beyond Bank in April 2011 for the purpose of securitising Australian Dollar, Prime, Full Documentation Residential Mortgages to raise wholesale funding from institutional investors in the Australian capital markets. The Program is managed by Community CPS Services Pty Ltd, a wholly owned subsidiary of Beyond Bank Australia.
The Barton Program currently comprises of three Term RMBS trusts (Barton Series 2011-1, Barton Series 2014-1 and Barton Series 2017-1), a self-securitisation trust (called Barton Series 2013-1R) and two warehouse securitisation trusts. Beyond Bank continues to service the securitised loans and retains custody of the associated mortgage documentation.
What is securitisation?
Securitisation is the process of taking many individual financial assets (such as mortgage loans) and combining them into a group, or pool, so that investors may buy interests in the pool rather than in the individual assets. The Pool is often structured into different tiers of packaged instruments with unique terms, risk characteristics and returns. This process increases the number of possible investors due to the ability to sell shares in the pool at relatively modest prices. Investors are able to purchase portions of a mortgage pool as a type of bond or note. In addition, because of the high degree of predictability inherent in large groups of similar assets, the process of securitisation increases predictability, lowers risk, and therefore increases value. The principal and interest on the debt underlying the security is paid to the investors on a periodic (usually monthly) basis. Notes backed by residential mortgages are known as residential mortgage-backed securities (RMBS), while those backed by other types of loans are known as asset-backed securities (ABS).