Canberra takes a bond ‘step change’ (The Australian)

The AOFM has started operating the $15bn Structured Finance Support Fund to help smaller lenders access funding during a period of market dislocation. Further detail on the fund provided on Tuesday evening said it was available to non-bank lenders and authorised deposit-taking institutions that did not have the collateral required to tap the RBA’s $90bn funding facility for banks. The AOFM will seek to invest in packages of loans — that are securitised — to assist smaller lenders while also considering making investments in warehouse facilities. On Friday, the AOFM started the operation of the structured fund, by investing $189m across six tranches of Firstmac’s $1bn mortgage bond. 

View article here (subscription required)

Read more…

Recent articles

03 Apr 2017

Firstmac chases bank licence

Firstmac owner Kim Cannon has resumed his concerted push for a banking licence, arguing the nation’s biggest non-bank lender has the required “capacity and character” and would be a serious competitive threat to the big four.

View article here