Investors Can Now Buy Bonds Backed by AIG Mortgage Insurance

The headquarters of American International Group (AIG)
Photographer: Daniel Acker/Bloomberg

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By Jody Shenn and Tracy Alloway

July 16, 2015 at 5:45 PM UTC

Updated on

July 16, 2015 at 7:34 PM UTC

This article is for subscribers only.

Credit Suisse Group AG is seeking to sell almost $300 million of notes tied to mortgage-insurance policies written by an American International Group Inc. unit, offering investors a new way to profit from a reviving U.S. housing market.

When the deal closes, AIG’s United Guaranty Corp. will receive reinsurance protection on about $32.4 billion of loans from Bellemeade Re Ltd., a Bermuda company that’s issuing the debt, according to a marketing document obtained by Bloomberg.