Sale of Certain RMBS Investments

1 February 2013

The AOFM has recently sold

  • $146.5 million in original face value of the IDOL 2011-2 A1 residential mortgage-backed securities (“RMBS”). The floating rate securities were sold at an effective margin of 90 basis points over the one-month BBSW rate with a remaining weighted average life of around 2.1 years;
  • $25.25 million of the SMHL 2011-2 AB RMBS. The floating rate securities were sold at an effective margin of 205 basis points over the one-month BBSW rate with a remaining weighted average life of around 4.3 years; and
  • $26.25 million of the Torrens 2011-2 AB RMBS. The floating rate securities were also sold at an effective margin of 205 basis points over the one-month BBSW rate with a remaining weighted average life of around 4.5 years.

The sale was made in accordance with the Treasurer’’s Directions, which allow the AOFM to adjust its holdings of RMBS.

The AOFM is reporting the details of this transaction in the interests of secondary market transparency. The AOFM will continue to monitor primary and secondary market activity in formulating its advice to Treasury and the Government.

The AOFM reports on its participation in primary RMBS transactions as they occur. The AOFM’s month-end investment holdings, including RMBS investments, are also reported on the AOFM website.

Last updated: 21 March 2014