The Federal Deposit Insurance Corp. (FDIC) announced its third issue under its Structured Sale Guaranteed Notes 2010-L2 series.
The single note tranche is offering $653 million, 2.73 year dated, fixed-rate Class A notes.
It’s the third issue that FDIC has done since announcing that it will be selling to investors $3.85 billion worth of bonds guaranteed by the government. Barclays Capital is the sole book runner on the deals.
All of the deals are backed by residential mortgage loans and construction loan assets from failed banks that the FDIC took over.
The previous two deals included $150 million of 1.62-year notes that priced at 18 basis points over eurodollar swap futures; $850 million of 2.62-year notes that priced at 21 basis points over interest rate swaps; and $377.35 million of 3.62-year notes that priced at a spread of 24 basis points over swaps, market sources said.
It also included the earlier sale of FDIC’s $1.8 billion securitization backed by option ARM mortgages. That deal was divided into a $1.33 billion floating rate transaction and a $480 million fixed-rate deal.
The transaction saw its floating rate portion priced 10 points tighter than the initial price guidance of 65 basis points over one-month Libor and a portion of the fixed-rate tranche priced five to 10 points tighter than the initial price guidance of 90 to 95 basis points over i-swaps.