Credit Suisse plans $721M notes issuance backed by mortgage warehouse

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A Credit Suisse master trust is marketing its second securitization in the past month of notes backed by a revolving warehouse facility of single-family residential mortgages.

The $721.75 million Mortgage Repurchase Agreement Financing Trust Series 2020-2 is the ninth series of notes issued under the trust, for which proceeds will be used to purchase eligible mortgage loans for the facility.

According to a presale report from Moody’s Investors Service, the transaction involves Credit Suisse selling the loans to a trust under a full-recourse repurchase agreement (loans that Credit Suisse itself acquired under repurchase agreements with other loan sellers).

While the pool’s composition of loans will change over time due to the revolving nature, those loans will have to meet eligibility criteria such as first-lien standing, subject to the underlying repurchase agreement, and must not cause the pool to breach the maximum outstanding purchase price of the collateral loans. All of the loans in the pool meet the origination guidelines of Fannie Mae, Freddie Mac or Ginnie Mae.

The series is the second issuance since April, when Credit Suisse AG sponsored the 2020-1 offering totaling $250 million.

Moody’s has assigned a preliminary A1 rating to the 2020-2 series notes. The rating is based on the corporate ranking of Credit Suisse, the ratings agency report stated.

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