The government has chosen five institutions to manage a $3.4 billion RMBS investment.
Federal government agency the Australian Office of Financial Management (AOFM) will invest $3.4 billion in residential mortgage-backed securities (RMBS).
The government has chosen AMP Capital, Firstmac, Liberty Financial, Members Equity and Resimac as lenders for the $3.4 billion investment.
The move follows an October 2009 announcement by Treasurer Wayne Swan and the AOFM that the government agency would invest $8 billion in the RMBS sector.
The investments were aimed at supporting competition in residential mortgage lending from a diverse range of lenders, the AOFM said.
The investment arrangements could provide lenders with greater funding and so a greater capacity to compete in mortgage lending, it said.
Australian Securitisation Forum chief operating officer Andrew Snell said: "We are delighted that the government in conjunction with the AOFM has invested in the RMBS market. The investment will help institutions to continue lending and will increase diversity in Australia's lending market."
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