Homestar Mortgage recently completed its first term securitization backed by $308 million of Alt-A mortgages and underwritten by Citigroup Global Markets, according to records filed with the Securities and Exchange Commission. This transaction is larger than the $200 million deal the company initially planned when it received regulatory approval last year (See ASR 8/11/03).

The inaugural HMAC 2004-1 transaction offered investors $285 million in triple-A rated notes supported by eight tranches of mezzanine notes. The $256 million A1 and $28.5 million A2 senior classes, each with 3.54-year average lives, priced at par with coupons of 32 and 42 basis points, respectively, over one-month Libor.

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