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AOFM backs two RMBS issues

by Staff Reporter7 minute read
The Adviser

The federal government will invest in another two RMBS issues as part of its $8 billion plan to inject much-needed liquidity into the home-loan market.

The Australian Office of Financial Management (AOFM) said it will act as a cornerstone investor in the offers from mortgage lenders Greater Building Society and Suncorp-Metway.

The AOFM did not disclose how much of each offer it would buy or how big the issues are, however they are expected to be priced by the end of August.

The federal body has already invested $6.7 billion across 15 issues as part of the plan launched late in 2008.

Last week, the AOFM became the cornerstone investor in Wide Bay’s $433 million issue.

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