American International Group (AIG) has replaced chief executive Martin Sullivan with its chairman, Robert Willumstad, who was formerly president and chief operating officer of Citigroup.
Sullivan had replaced Maurice Greenberg in March 2005 after the company was implicated in financial misdeeds by New York Attorney General Eliot Spitzer.
AIG reported a $7.81 billion loss for the first quarter, and AIG Mortgage Insurance subsidiary AIG United Guaranty lost $352 million in the first quarter.
Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
