Citigroup Plans First Mortgage-Bond Sale Since Financial Crisis
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Citigroup Inc., the bank rescued with a $45 billion capital injection from taxpayers during the financial crisis, is planning its first sale of bonds tied to new home loans without government backing since the market’s collapse in 2008.
The transaction is backed by $210 million of prime jumbo mortgages acquired by the New York-based company’s investment bank from lenders led by Nationstar Mortgage LLC, DBRS Ltd. said today in a statement. The credit grader plans to assign AAA rankings to $196.3 million of the debt.