Second AOFM RMBS auction

On Tuesday the AOFM held the second scheduled auction of RMBS bought by the Federal government during the GFC in order to inject liquidity into the banking system. The second of several RMBS auctions, bids were accepted for approximately $260m of the $3.2bn in original face value terms on offer. The amount sold is even less than the June auction, both in absolute size and in percentage terms and is clearly a concern to the Federal government as it seeks to sell the RMBS at a ‘fair’ price. The next auction will be held in August.