Credit Suisse Group AG is issuing $417.7 million of securities backed by prime jumbo mortgages, according to Standard & Poor’s.
Some of the underlying loans were acquired in bulk from MetLife Inc. while others were bought individually, the New York-based ratings company said today in statement. S&P granted top grades to $390 million of the bonds.
Credit Suisse teamed with Chimera Investment Corp., the New York-based real estate investment trust, on a $730 million deal in March. The name of the latest offering also contains the letters CIM, matching the REIT’s stock ticker. Redwood Trust Inc., which has been planning a deal with $293.6 million of jumbo mortgages, is the only other issuer of securities tied to new U.S. home loans without government backing since the market froze in 2008.
Previous offerings totaled less than $3 billion, according to data compiled by Bloomberg, compared with issuance of about $1.2 trillion in each of 2005 and 2006. Government-supported programs and demand from banks for loans are limiting the market’s revival after a collapse in the prices of outstanding securities as foreclosures soared and home values tumbled.
Steven Vames, a spokesman in New York for Credit Suisse, declined to immediately comment. Jay Diamond, a spokesman for Chimera, didn’t immediately return an e-mailed message.
Jumbo home loans are larger than allowed in government-supported programs, currently as much as $729,750 for single-family properties in some areas. Limits range from $417,000 to $625,500 for Fannie Mae and Freddie Mac loans with the lowest costs for borrowers using 20 percent down payments.