BayView Financial Trading Group priced a $432 million home-equity deal last week, which included a small 4% to 5% sliver of franchise loans, the first batch to be financed in the securitization market this year.

The deal, which was joint led by Bear Stearns (books) and Lehman Brothers, was structured in six parts, with the triple-A A class pricing at 40 basis points over the one-month Libor, five points wide of talk (30-35). Similarly, the M1 and M2 classes priced outside of guidance by five and 10 points, respectively (see scorecard p.27).

Although BayView sounds like Bay View [Capital Corp], BFTG is in fact an entirely different company, not affiliated with Franchise Mortgage Acceptance Corp., Bay View Capital Corp.'s ailing subsidiary, whose triple-A paper trades at distressed levels, in the 200 over swaps range.

Still, the small portion of non-FMAC franchise collateral in BFTG's deal was sold in at a steep discount, which allows the franchise piece to act as a retained interest, or first-loss piece.

Miami, Fla.-based BFTG has closed approximately $3 billion in securitizations, primarily in the home-equity sector, and all sold as Rule 144A deals, according to Thomson Financial.

Established in 1980, BFTG is a mortgage banking boutique with more than 500 employees.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.