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Australia Halts RMBS Auctions After Volumes Less Than Expected

Discussion in 'Property Market Economics' started by Kangabanga, 5th Nov, 2015.

  1. Kangabanga

    Kangabanga Well-Known Member

    21st Jun, 2015
    Australia Halts RMBS Auctions After Volumes Less Than Expected

    The Australian government won't proceed with selling off its mortgage bond portfolio until February at the earliest after it decided not to accept any bids at its most recent auction.

    The Australian Office of Financial Management, the government funding agency tasked with selling down the residential mortgage-backed securities it bought amid the global financial crisis to support the market, announced on Thursday the cancellation of auctions it had scheduled for November and December. It also won’t hold a sale in January and is yet to commit to any sales further down the track.

    The AOFM has undertaken five RMBS auctions since the government announced in the May budget its plan to gradually offload the remaining securities it acquired under the support program, worth about A$4.6 billion.......


    Anyone has any idea what this is all about? It's government stuff how come no buyers?
  2. Waterboy

    Waterboy Well-Known Member

    29th Aug, 2015
    This is not new. It's a normal thing happening.

    The AOFM bought a lot of RMBS during the GFC to help support funding.

    Now that they want to offload these securities, they're not getting the prices they want.