Fourth AOFM RMBS auction: inaction perhaps a better description

In the AOFM’s fourth RMBS auction, just under $78m of securities held by the AOFM were sold, representing a little under 16% of the amortised face value of bonds on offer. The amount sold was less than the previous three auctions  held by the AOFM and is in spite of the amount on offer being reduced. The chief of the AOFM, Rob Nicholls gave a speech in July in which he discussed the aims of the sales process and he sought to dismiss theories the AOFM was under pressure to sell. The AOFM bought large swathes of RMBS from investment banks in the aftermath of the GFC in order to inject liquidity into the banking system and keep the mortgage market open. The next auction will be in late October.