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FirstMac back in RMBS market

by Staff Reporter7 minute read
The Adviser

FirstMac looks set to sell $400 million in RMBS, after announcing the deal on Friday.

The offer, which is expected to be priced on November 10, will see the government buy some of the issue as part of its $8 billion injection of funds.

The issue will effectively drain the last of the government’s original $8 billion support program.

However, late last month, the government announced that it would inject a further $8 billion to help stimulate competition among local mortgage lenders.

Small lenders have suffered greatly since the US subprime mortgage crisis because they are reliant on the now-moribund securitisation market to fund their operations.

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