On April 9, the AOFM has provided an update on its plans for SFSF investment.
It has received significant interest in the SFSF and is considering proposals for primary issuance participation, and investment in securities issued by warehouse facilities. Key points to note from the update:
Read the full AOFM update >
- Focus of SFSF investment is likely to be in mezzanine tranches of term and warehouse transactions.
- The AOFM will, at its discretion, purchase existing securities from investors who commit to supporting primary market transactions in which the SFSF can invest.
- The AOFM is now planning other intervention in the secondary term securitisation market with the aim of facilitating new primary issuance.
- The AOFM is working with the ASF on a ‘forbearance model’ that will allow for the SFSF to support term and warehouse structures where COVID-19 hardship cases can be shown to be restricting cash flow into securitisation vehicles.
- The AOFM’s purchases of primary and secondary term RMBS/CMBS/ABS will be intermediated by members of its investment panel.