"Achieving our first A (low) rated senior class and tightest credit spreads to date demonstrates the confidence institutional investors have in this asset class and the continued maturation of the home equity agreement market, said Timothy Carr, chief investment officer at Saluda Grade. The overwhelming response more than $1 billion in orders shows that investors recognize HEAs as a sustainable, performance-driven investment opportunity that also deliver meaningful financial flexibility to homeowners."
"With each successful securitization, we're demonstrating the utility and value of our home equity agreement: to our homeowners as an innovative home financing solution, and to our institutional investors as an attractive new asset class, Unlock CEO Jim Riccitelli said in a statement. This deal accelerates our journey toward making it easier and more affordable for homeowners to access their home equity, without adding a monthly payment."
The securitization was significantly oversubscribed, drawing more than $1 billion in orders and attracting multiple first-time investors. The transaction issued $167.7 million of senior Class A securities rated A (low); $47.8 million of mezzanine Class B securities rated BBB (low); $39.7 million of subordinate Class C securities rated BB; and $48.3 million of subordinate Class D non-rated securities. The deal marked the first HEA securitization with a senior class rated A (low). Barclays Capital acted as structuring lead, Jefferies LLC as joint bookrunner, and Texas Capital Securities and East West Markets as co-managers. Market indicators show tappable equity near historic highs and growing homeowner interest in leveraging home equity; a survey found 60% of homeowners view the option as added financial security.
Read at www.housingwire.com
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