Credit Suisse Sells AIG Non-Conforming MBS Securities

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.

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