Gryphon Capital Investment Trust, an ASX-listed fund that invests in residential mortgage-backed securities, has advised investors that hardship relief provided to borrowers impacted by COVID-19 will reduce the principal and interest payments that flow through to RMBS note holders.In a statement released on Friday, Gryphon said Australian securitisation programs have "structural protections against liquidity stress, such as what is anticipated with the granting of hardship relief for borrowers."Such structural protections are sized to allow interest payments to continue to be made to the RMBS note holders."The A$400 million fund was listed on the ASX in May 2018. Its investment strategy is to generate income from investments in Australian RMBS and asset-backed securities.Gryphon said it does expect arrears to increase in coming months. Offsetting the impact of unemployment and other COVID-19 effects, many borrowers are ahead of their scheduled payments, have offset balances or other capacity to meet their mortgage repayments."Assuming the outbreak will peak mid-year and the economic recovery commences in the third quarter of this year, we do not believe that the expected increase in arrears will roll into either late stage arrears or eventually into default," Gryphon said."Sustainable monthly income is a core pillar of Gryphon Capital Income Trust and we are not expecting any disruption to the monthly distributions."