Gov invests in ME home loans
(5 November 2008 – Australia) Member’s Equity has announced that the Federal Government has invested A$500 million in one of its home loan securitisations.
The Federal Government's Australian Office of Financial Management (AOFM) has invested A$500 million in Members Equity Bank's AAA-Rated Super Members Home Loans (SMHL) Securitisation Fund Residential Mortgage-Backed Securities (RMBS).
The decision by the Government came after it last month announced its intentions of a large purchase in both deposit taking and non deposit taking institutions in Australia.
The Federal Prime Minister announced the AOFM would purchase A$4 billion in RMBS in Authorised Deposit-Taking Institutions. Last week the Government directed the AOFM to invest a further A$4 Billion in non-ADI institutions.
Members Equity Bank's chief financial officer, Nicholas Vamvakas, said he was pleased that the AOFM had selected SMHL's A1 and A2 Bonds as part of its initial offering.
He said that the bank appreciates the Federal Government's efforts to 'unfreeze' the wholesale credit market and to ensure equal access to funding by all financial institutions in Australia.
The Government outlay may be up to $20 million of the $500 million (or 2 per cent of the total issue) in the A2 Bonds, with the remainder in A1 Bonds.
The decision by the Government came after it last month announced its intentions of a large purchase in both deposit taking and non deposit taking institutions in Australia.
The Federal Prime Minister announced the AOFM would purchase A$4 billion in RMBS in Authorised Deposit-Taking Institutions. Last week the Government directed the AOFM to invest a further A$4 Billion in non-ADI institutions.
Members Equity Bank's chief financial officer, Nicholas Vamvakas, said he was pleased that the AOFM had selected SMHL's A1 and A2 Bonds as part of its initial offering.
He said that the bank appreciates the Federal Government's efforts to 'unfreeze' the wholesale credit market and to ensure equal access to funding by all financial institutions in Australia.
The Government outlay may be up to $20 million of the $500 million (or 2 per cent of the total issue) in the A2 Bonds, with the remainder in A1 Bonds.
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