Freddie Mac: Here are the top 5 improving metro markets for housing

The Census Bureau is cooking the new home sales numbers

You can’t make bricks with imaginary straw

The 12 hottest housing markets right now

And the biggest losers in the price growth race
W S
Investments / Lending

$366 million in subprime-boom bonds coming to market

Big names scheduled to trade Tuesday

stocks

Investors seeking to get their hands on some subprime vintage debt will get their chance on Tuesday, when $366.14 million in non-agency pre-bust bonds are scheduled to trade.

The scheduled sale comes on the heels of a recent uptick in subprime debt trading.

In July, two separate bond deals from BlackRock jumpstarted a market that had been slumbering since January, when the Dutch State Treasury Agency liquidated the last $4.3 billion residential mortgage-backed securitization remaining from the ING US portfolio.

The January 16 sale of the ING portfolio was the largest single day of non-agency RMBS selling activity prior to BlackRock sale of $3.7 billion in debt on July 15, according to Interactive Data, which monitors secondary market bond trading.

The following week, Credit Suisse won two separate bids for a combined $4.4 billion pool of legacy RMBS, also sold by BlackRock.

And at the end of July, an undisclosed seller brought $640 million in non-agency subprime debt to the market.

On Tuesday, $366.14 million more in subprime debt will hit the market. According to bond analytics firm, Interactive Data, 75% ($272 million) of the bonds are of 2005 vintage. The remaining 25% are made up almost entirely of 2006 vintage bonds, which account for $91 million of the offering. The remaining 1% is fro 2007.

Of note in the breakdown of the bond pool are some notorious names associated with the subprime lending boom, including: Ameriquest Mortgage, Countrywide Financial, Bear Stearns, Goldman Sachs, JPMorgan, and Citigroup.

Ameriquest and Countrywide were the two largest issuers of subprime residential mortgage-backed securitizations in 2005, with a total of more than $92 billion issued.

Ameriquest represented 10.7% of the subprime market that year, which it issues 55 RMBSs for a total of $54.24 billion. Countrywide’s market share was 7.5% in 2005, when it issued 44 RMBSs for $38.1 billion.

There are 52 total line items in the bid pool.

Click the image below to see a full breakdown of the offering’s line items, courtesy of Interactive Data.

$366 million subprime bonds 8-15-14

Recent Articles by Ben Lane

Comments powered by Disqus