Macquarie has been a leading participant in secured funding markets since 1993. Securitisation is used to diversify the Group’s sources of funding, most notably through the PUMA residential mortgage-backed program, the SMART asset backed program and the MBL covered bond programme.
Macquarie Debt Markets is also a leading arranger and lead manager of Australian mortgage and asset backed securities for its third party clients.
The PUMA Program is an umbrella term for a number of separate trust funds that Macquarie uses to securitise Australian residential housing loans. There are two classes of trust funds which may be created under the PUMA Trust Deed – warehouse funds and sub-funds.
A warehouse fund may be used to originate housing loans in preparation for the securitisation of those housing loans in the future. Sub-funds are used to issue debt instruments in the form of RMBS and to use the proceeds to acquire housing loans.
Each warehouse fund and sub-fund is a separate and independent trust within the PUMA Program. Each fund’s assets and liabilities are segregated from the assets and liabilities of other PUMA warehouse funds and sub-funds. Each sub-fund may issue multiple classes of notes with different characteristics, such as currency of denomination and payment, priority of repayment and credit risk.
In 2002, Macquarie Leasing established a securitisation program (the SMART Program) to enable the Trustee to issue debt instruments and apply the proceeds to invest in Macquarie Group assets. Macquarie uses the SMART program for the securitisation of motor vehicle and equipment leases.
The SMART Master Trust Deed provides for the creation of an unlimited number of series trusts. Each series trust is a separate and distinct trust fund. Each trust is created pursuant to the Master Trust Deed, a trust creation deed and a series supplement establishing specific provisions of the relevant series trust and the instruments to be issued by that series trust.
Multiple classes of notes may be issued by each series trust that differ amongst themselves as to, among other things, currency of denomination and payment, priority of repayment and credit risk.