22 May 2013
Sale of Certain RMBS Investments
This week, the AOFM has sold some holdings of residential mortgage-backed securities ("RMBS"). The amounts sold, in terms of amortised face value, are as follows:
- $100.5 million of the APOLLO 2009-1 A3;
- $99.4 million of the SMHL 2010-2E A3; and
- $100.8 million of the TORRENS 2009-1 A2.
These floating rate securities were sold at an effective margin of 75 basis points over the one-month BBSW rate with a remaining weighted average life of around 2.5 years.
The sale was made in accordance with the Treasurer's Directions, which allow the AOFM to adjust its holdings of RMBS.
The AOFM is reporting the details of this transaction in the interests of secondary market transparency.
The AOFM will continue to monitor primary and secondary market activity, manage the remaining book of RMBS, and report month-end holdings on the AOFM website.