Bayview Asset Management’s next offering of reperforming residential mortgage bonds is backed by lower-balance loans than its previous transaction, according to rating agency presale reports.

The transaction, Bayview Opportunity Master Fund IVb Trust 2017-RT2 will issue $125.82 million of notes; the senior Class A notes, are rated triple-A by both DBRS and Fitch Ratings. They benefit from 38.65% credit enhancement in the form of subordination of the Class B notes. That’s up from 27.25% for the senior tranche of a transaction that Bayview completed earlier this year.

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