AOFM to deploy first ABSF funds, but future unclear
Judo Bank is the recipient of the first tranche from the Australian Office of Financial Management’s Australian Business Securitisation Fund, the AOFM revealed on 2 April. Judo will also receive support from the structured finance support fund. The immediate future of the ABSF is unclear, however, as the AOFM has also suggested that proposals for ABSF support may be rolled into the SFSF.
RBNZ adds long-term bank funding and restricts capital redemptions
The Reserve Bank of New Zealand (RBNZ) has added a term-lending facility (TLF) for banks to its suite of COVID-19 relief measures. It has also restricted banks from redeeming capital instruments that are not common-equity tier-one (CET1).
NZDM increases issuance programme by NZ$12 billion
On 1 April, New Zealand Debt Management (NZDM) increased its New Zealand Government Bond (NZGB) programme to NZ$25 billion (US$14.9 billion) for the 2019/20 financial year, an increase of NZ$12 billion from the update given on 17 March. The revised funding requirement is due to the additional fiscal impacts of COVID-19.
COVID-19 impact on RMBS pool a complex assessment
Primary deals are now possible in the Australian securitisation market as a result of government support. Attention is turning to what effect the COVID-19 fallout might have on new and existing residential mortgage-backed securities (RMBS) pools.
AOFM provides guidance on expressions of interest for SFSF
The Australian Office of Financial Management (AOFM) has revealed further details for securitisation issuers seeking to access its structured finance support fund (SFSF). The 31 March announcement includes guidelines on how to engage the AOFM for expressions of interest.