Bonds
Rithm Sells Largest Ever Bond Backed by Homeowners' Mortgage Fees
The bonds are tied to rights to collect mortgage payments and it’s only the second such deal that’s non-recourse.
Photographer: Jordan Vonderhaar/BloombergThis article is for subscribers only.
Rithm Capital Corp. sold nearly $900 million of debt backed by the fees collected from homeowners when they make their mortgage payments, in what the firm said is the largest ever securitization of its kind.
Bond buyers finalized their orders earlier this month at a spread of 290 basis points over Treasuries. Rithm expanded the original size of the deal to accommodate more investors, according to Sanjeev Khanna, the company’s head of capital markets.