AOFM Quarterly SFSF Update

AOFM Quarterly SFSF Update

AOFM Quarterly SFSF Update

Jan 15 2021

The AOFM has released an update on its SFSF activities as at December 31. As at this date, total funds invested or committed by the SFSF were $3.75 billion.

Public Markets

The AOFM reported that public securitisation market conditions continued to improve through the quarter, reducing the need for SFSF support for primary and secondary markets. Key points to note:

  • Non-ADI RMBS issuance closed the year on a very strong note with full year issuance volumes well ahead of prior years
  • Market feedback received by the AOFM is that its preparedness to invest SFSF funds to fill gaps across investment grade tranches has reduced the execution risk for issuers of public securitisation transactions. 
  • Cumulative public market investments made since the SFSF’s inception stand at around $1.36 billion as at 31 December
  • No investments were made through the December quarter.

Private markets

The AOFM continued to receive expressions of interest for the SFSF to invest in private warehouse facilities throughout the quarter, although the rate has slowed. As at 31 December 2020, SFSF commitments of circa $2.3 billion have supported 45 individual warehouses sponsored by 34 eligible lenders.

Forbearance SPV

During the course of the December quarter, five participating originators drew down on their limits. Two approved originators are expected to complete the onboarding process in January. Total draws on the fSPV stood at $45 million as at the end of December.

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