Credit Suisse Group breathed some life in the securitization market this week, after selling securities backed by non-government-guaranteed mortgages to a group of institutional investors. It is one of the first such sales in more than a year. The notes carry a balance of $1.6bn and the transaction should be completed by the end of this month. Credit Suisse purchased the mortgage-backed certificates from American General, a subsidiary of the American International Group (AIG). The loans have an approximate certificate principal balance of $1.6bn, according to a Securities and Exchange Commission (SEC) filing dated July 8. American General will receive anywhere from $925m to $975m, depending on the final size of the mortgage pool and after deducting expenses, according to the filing. A ratings firm didn’t rate the securities, but The Wall Street Journal reported the majority loans are around four years old and are mostly performing. Write to Austin Kilgore.
Credit Suisse Sells AIG Non-Conforming MBS Securities
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