Sydney, 19 March 2020
The Australian Securitisation Forum (ASF) welcomes today’s announcement by the Treasurer, Josh Frydenberg, that the Australian Office of Financial Management (AOFM) will be provided with an investment capacity of $15 billion to invest in wholesale funding markets including the securitisation market used by small ADIs and non-ADI lenders. The $15 billion program will allow the AOFM to support lending by these smaller lenders over a 12-month period.
Importantly, the assets being purchased by the AOFM will not be limited to just residential mortgage-backed securities. The AOFM will also be able to invest in a range of other asset-backed securities and warehouse facilities. The Government will provide the AOFM with investment guidelines that will outline the basis on which the AOFM is to undertake these investments.
The Chief Executive of the ASF, Chris Dalton, applauded the Government’s quick and targeted response to the dislocation of funding markets that have temporarily frozen securitisation and other institutional markets. He said “the AOFM has a successful track record in supporting the securitisation market during the financial crisis that commenced in 2008”.
He added “it is particularly pleasing to see that the 2020 AOFM program will support not only residential mortgage-backed securities but asset-backed securities and warehouse facilities”. He further noted “the program will provide vital support for many non-ADI lenders and assist in funding small businesses and households in the coming months”. Mr Dalton said “the ASF looks forward to working with its members and the AOFM to ensure the program effectively achieves its objective and the program is implemented in a timely manner”.
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About the Australian Securitisation Forum
The ASF is the industry body that promotes the development of the securitisation and covered bond markets in Australia and New Zealand. The ASF represents key participants in the industry with a broad-based membership consisting of issuers, banks, non-ADIs, investment banks, investors and service providers. Since 1989 the ASF has performed a key role in advocacy, standards and education in the Australian and more recently the New Zealand securitisation industries.
Chris Dalton Sarah Hofman
Chief Executive Officer Chairman
Australian Securitisation Forum Australian Securitisation Forum
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