AOFM gives RMBS market another stimulus with innovation on Suncorp deal

The Australian Office of Financial Management (AOFM) has been instrumental in driving another change in the residential mortgage-backed securities (RMBS) market which it hopes will bring about lower pricing in the primary RMBS market. The debt management agency hopes that this will in turn further support competition for residential mortgage lending and support lending to small business. The debt management agency has introduced this strategy via its participation in the upcoming A$500 million (US$407 million) RMBS deal launched by Suncorp Bank (Suncorp) (A/A1/A+) on May 25.