American General Financial Services, a subsidiary of AIG, will be coming out with two deals backed by legacy mortgage assets within the next two weeks.
RBS Securities is lead manager on the first deal, which will be backed by Alt-A legacy mortgages. Deutsche Bank Securities is co-manager on the transaction. The offering is expected to price within the next two days.
The second transaction, which will be backed by subprime mortgage assets, will be lead by Deutsche Bank.
Both deals will be in the $800 million range.
With the dearth in new-issue securitized mortgage deals, sources said that investors are excited about having new-issue mortgage transactions come to market.
“With credit enhancement two to three times more than it was three years ago and the fact that these transactions are backed by loans that have seasoned and performed well, these structures are much better all around,” Ryan Stark, a director at Deutsche Bank said..
At the end of last July, the company also came to market with a more than $1.57 billion deal that was backed by sub- and nonperforming whole loans – many of which are non-prime in quality, according to a report from ASR sister publication National Mortgage News. Credit Suisse was lead manager on the deal.