AOFM sets the date for its first RMBS auction 11 June 2015 4:24PM John Kavanagh The Australian Office of Financial Management will hold its first auction of residential mortgage-backed securities on June 24, when it will sell up to A$500 million of notes under the Apollo, Idol and Progress trust programs.The Government announced in the May Budget that the AOFM would divest its RMBS holdings, currently valued at $4.6 billion.In a notice issued yesterday, the AOFM said it would auction between $300 million and $500 million of RMBS a month, starting in June.A number of banks have registered as counterparties. They are ANZ, Citigroup, Commonwealth Bank, Deutsche Bank, Macquarie Bank, National Australia Bank and Westpac.The AOFM said it would continue to accept applications from banks wanting to register as counterparties, to be known as 'divestment panel members'.On the day of each auction bids are to be submitted by email to the divestment panel members. An undisclosed reserve price and fair value assessment will be set for each security offered and bids will be ranked against these criteria.The AOFM will exercise discretion with regard to the volume sold at each auction. If there are insufficient bids to meet the target volume at the reserve price, it will scale back.The second auction will be held on July 14, when up to $500 million of notes issued under the Apollo, Harvey, Progress, Reds, Resimac and SMHL trust programs will be offered.