SFSF Update | January 2025
This note provides an update on the AOFM’s Structured Finance Support Fund (SFSF) activities as at 31 January 2025. As at this date, cumulative investment commitments made by the SFSF were $3.8 billion and there are no current commitments. With no current commitments, there will be no SFSF Updates or SFSF investment reporting after 31 January 2025.
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 help small lenders provide forbearance to borrowers facing 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 January 2025, the book value of the SFSF’s public market investments was zero, representing a reduction of circa $71 million for the month as a result of amortisation, the exercising of call options by trustees and the sale of the remaining residential mortgage backed securities via a ‘Bids Wanted in Competition’ (BWIC) process.
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 January 2025, the SFSF no longer holds any warehouse commitments.
Forbearance SPV
On the 31st March 2021, the Forbearance SPV availability period ended and it moved into amortisation in April 2021 as planned.
As at 31 January 2025, the Forbearance SPV had no outstanding balances.
