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Challenger, Liberty RMBS to boost industry funds

by Staff Reporter8 minute read
The Adviser

The Australian Office of Financial Management (AOFM) continues to boost the mortgage market with two of the industry’s non-bank lenders launching RMBS issues in the past week.

Liberty Financial has launched a $600 million RMBS issue while Challenger has launched a $500 million deal – marking the lender’s second investment from the AOFM.

Andrew Twyford, Challenger general manager of securitisation and treasury mortgage management, said the AOFM’s decision to invest in Challenger a second time highlighted the contribution Challenger brought to market competition.

“If you look back to the launch of the program last year, it was set up to support institutions which bring the biggest competition to the major banks and rely on securitisation for funds,” he told Mortgage Business.

“Being the biggest non-bank lender we certainly fit the AOFM’s criteria and are well placed to help maintain competition in the mortgage market.”

Mr Twyford said he expected the deal to price before the week is out.

Since the launch of the AOFM initiative last year the government has now invested more than $3 billion in the mortgage market.

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