MountainView Capital Buys Securities Division from Bankrupt Lender Capmark

MountainView Capital Holdings, a service provider to the mortgage and capital markets, acquired Capmark Securities and made other hires to bolster its capability to hedge and trade fixed-income securities, which includes those backed by mortgages. The Denver-based secondary market player will soon be changing the name of the Capmark securities division. Capmark Securities was the subsidiary of the commercial real estate lender, Capmark Financial Group, which filed for Chapter 11 bankruptcy in October 2009. Other subsidiaries have since filed for bankruptcy as well or were sold off. MountainView hired a team of fixed-income professionals from Madison Williams and Company, which also provides a range of services and research to the space. The acquisition and new hiring are primarily an effort to give MountainView the ability to hedge risk in the mortgage pipeline. A mortgage loan will stay in the originator’s pipeline until it is sold to the secondary market. The team coming over from Madison Williams said hedging risk there is growing in demand. Details and pricing of the acquisition are not being released. In the 1990s, Capmark added to its mortgage-related income experience to include commercial mortgage-backed securities (CMBS), Ginnie Mae project loans and Fannie Mae securities. Capmark Securities will be renamed MountainView Securities. “We have a longstanding commitment to offer comprehensive and high-quality services to institutional participants in the dynamic mortgage and fixed income capital markets,” said Michael Morgan, CEO of MountainView Capital Holdings. “With the acquisition, key hires and new offerings for MountainView Securities, we continue to build on our commitment.” Ansel Eshelman was named managing director and head of fixed income trading at the new MountainView Securities, and William Sias was named managing director in fixed-income sales. That team has been working together since 2002. Write to Jon Prior.

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