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Australia Releases Additional $3.1 Bln to Boost RMBS Market

Published January 28, 2010 11:35 AM EST Updated January 28, 2010 1:40 PM EST 1 Min Read

The Australian government allocated up to A$3.4 billion ($3.1 billion) to five small lenders as part of its effort to boost the country’s RMBS market.

The five lenders are AMP Bank, Members Equity Bank, Liberty Financial, Resimac and Firstmac. Each of these smaller lenders will receive support from the AOFM support until December 15 this year.

The latest allocation by the Australian Office of Financial Management (AOFM) is part of the $8 billion set aside in November, a statement from Treasurer Wayne Swan‘s office said.

Swan also said that he hoped that the recent improvement in the securitization markets will encourage private investors to participate.

“It is expected that private investors will also participate significantly in these offerings, following recent encouraging signs of improvement in securitization markets,” Swan said in a statement.

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