MFA Financial sells $1.32 billion of resecuritization
Real estate investment trust MFA Financial Inc. (MFA) sold $1.32 billion of non-agency residential mortgage-backed securities to Credit Suisse First Boston Mortgage Securities Corp. MFA said the deal is part of a resecuritization transaction spearheaded by Credit Suisse (CS). Linked to this transaction was a move by third-party investors to acquire $488.4 million in variable rate, super senior bonds rated triple-A by DBRS Inc. and issued through a resecuritization vehicle titled CSMC Series 2011-1R. The senior bonds have a weighted average life of two years and a pass-through rate of one-month LIBOR + 100 basis points. The company views this transaction as one that will finance "the underlying RMBS at an attractive rate," MFA Financial said in a statement. In addition, MFA purchased $831.6 million in three classes of non-rated super senior report certificates issued by the CSMC Trust that will provide the firm with credit to back the senior bonds. MFA will finance the bonds with repurchase agreements. MFA also acquired $488.4 million in non-rated interest-only senior certificates issued by the Trust. The structured transaction is following MFA Financial's recent trend of growing its non-agency MBS portfolio. The company expanded the portfolio by acquiring $509.8 million in non-agency MBS in the fourth quarter. Write to Kerri Panchuk.