A story last week incorrectly stated that ZCM Matched Funding Corp. had been downgraded. Fenway Funding was put on review for downgrade, following the placement of ZCMMF on review for downgrade. ZCMMF is a total return swap counterparty to Fenway. ZCMMF's rating is based on a surety bond from Zurich Insurance Company which Moody's placed on review for downgrade in late February.
The deal will raise about $175 million in securitized bonds, backed by a pool of residential investors loans (42.1%) and traditional small-balance commercial (SBC) mortgages.
Aqua Finance's credit enhancements include a sequential pay structure until the class A credit enhancement period is over.
Homeowners won't trade in their cheap mortgages so lenders keep finding other ways to reach that equity. Bond buyers keep showing up.
The new record arrives after five months of annual home-price growth, which surged to its highest in more than a year, according to ICE Mortgage Technology.
Despite the variety of loans in the pool, the vast majority of assets are considered qualified mortgages, with only 10.9% considered non-QM.
The July jobs report was bad, but the context is worse: people leaving the labor force, stubborn inflation and rising bond yields.
