Investors looking to get their hands on some subprime vintage debt will get their chance on Tuesday, when $477.8 million in non-agency pre-bust bonds are scheduled to trade as part of $727.3 million package.
According to bond analytics firm Interactive Data, two-thirds of the bond offering consists of subprime bonds. The remaining lines of the bond offering are Alt-A fixed-rate and adjustable rate; pay option ARM and prime fixed-rate as well.
The scheduled trade is the latest in a trend that has seen an increase in subprime debt trading in the last several months. The subprime market was all but dead from January until July. Since then, several large packages of subprime bonds have traded.
In August, $366.14 million in subprime bonds traded. That list featured some of the most notorious names in subprime lending, including: Ameriquest Mortgage, Countrywide Financial, Bear Stearns, Goldman Sachs, JPMorgan, and Citigroup.
In July, two separate bond deals from BlackRock roused 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 the BlackRock sale of $3.7 billion in debt on July 15, according to Interactive Data.
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.
Now, $477.8 million more in subprime debt is available, and at least two of the biggest names in subprime are represented. According to Interactive Data, bonds from both Countrywide and Bear Stearns are part of this package.
The bonds are scheduled to trade at 11 a.m. Eastern on Tuesday.