Quarterly SFSF Update | October 2024
This note provides an update on the AOFM’s Structured Finance Support Fund (SFSF) activities as at 30 September 2024. As at this date, cumulative investment commitments made by the SFSF were $3.8 billion, while total current commitments are around $83 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 30 September 2024, the book value of the SFSF’s public market investments stood at around $77 million, representing a reduction of circa $26 million for the quarter as a result of both amortisation and the exercising of call options by trustees.
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.
In August 2024, the SFSF exited its remaining warehouse investment, a $50 million commitment. Consequently, as at 30 September 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.
As at 30 September 2024, the balance of the Forbearance SPV stood at around $5.8 million across two remaining participating originators.
