Accredited Home Lenders, Inc. priced a $1 billion senior/subordinate deal last week via lead agent Lehman Brothers, marking the home equity lender's largest ABS to date and its first transaction offering yieldier subordinate bonds.

Following the creation of a captive Real-Estate Investment Trust (REIT) subsidiary, Accredited was put in a position to sell subordinated bonds technique more readily, due to the tax benefits, said Accredited co-founder Ray McKewon.

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