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SFSF Update - Investment activity

11 May 2020

The AOFM has invested in primary and secondary public securitisation markets in the last several days. In the interests of transparency and price discovery, a spreadsheet summary of each investment can be found on the SFSF page of the AOFM website. In addition to separate pages for primary and secondary activity, a third page summarises the SFSF’s participation in private warehouses.

It is the AOFM’s intention to update this spreadsheet at least monthly, or more frequently where it perceives the market would benefit from information that would support price discovery, particularly within secondary markets.

In primary market transactions where the AOFM is the sole (non-related) investor in a tranche, it will disclose this in a note alongside the relevant tranche. The absence of such a note means the AOFM acted as a price-taker in the relevant tranche.

To date, all secondary market activity has been undertaken as an adjunct to primary market activity, that is, where the AOFM has facilitated ‘switches’ from investors seeking to enter into new primary market transactions by seeking that the SFSF bid for older securities.

Warehouse investments are recorded as amounts approved for investment by the SFSF delegate and represent an upper limit on the amount that can be invested by the SFSF, once the documentation and other establishment processes are complete. These amounts thus represent commitments from the SFSF, rather than the amount currently invested.

Separately, on 6 May the Treasurer issued an amendment to the Structured Finance Support Direction, which can be found on the SFSF page of the AOFM website.