Quarterly SFSF Update | January 2025
This note provides an update on the AOFM’s Structured Finance Support Fund (SFSF) activities as at 31 December 2024. As at this date, cumulative investment commitments made by the SFSF were $3.8 billion, while total current commitments are around $71 million.
There were three main work streams for the provision of SFSF support: (1) public (primary and secondary) markets; (2) private (warehouse) markets; and (3) forbearance (the establishment of arrangements to assist small lenders to provide forbearance for borrowers experiencing Covid-19 related hardship).
Public Markets
Public securitisation market investments of around $1.36 billion were made between late March 2020 and early July 2020.
As at 31 December 2024, the book value of the SFSF’s public market investments stood at around $71 million, representing a reduction of circa $7 million for the quarter as a result of both amortisation and the exercising of call options by trustees.
The AOFM today announces that, subject to market conditions, the AOFM will sell the SFSF’s remaining public RMBS via a ‘Bids Wanted in Competition’ (BWIC) process, in the last week of January 2025. Further details such as the banks who will operate the BWIC on the AOFM’s behalf, the bidding process, reserve pricing and any other details, will be disclosed at noon on Friday 24 January. No fee will be paid by the AOFM to the banks undertaking the BWIC.
Private markets
In private warehouse markets, a cumulative total of circa $2.3 billion in commitments were approved across 45 individual warehouses from 34 sponsors since the SFSF’s inception.
As at 31 December 2024, the SFSF no longer holds any warehouse commitments.
Forbearance SPV
On the 31st March 2021, the Forbearance SPV availability period ceased and the Forbearance SPV moved into amortisation in April 2021 as planned.
In December 2024, the two remaining participants of the Forbearance SPV had elected to repay their remaining balances.
As at 31 December 2024, the Forbearance SPV had no outstanding balance.
