On Friday, DBRS released preliminary ratings for a Credit Suisse non-agency RMBS deal, CSMC Trust 2014-IVR1.
The deal is offering $267.7 million of AAA’ rated notes. The $248 million super-senior, class A-1 notes benefit from additional protection from the class A-2 notes. The notes have a credit enhancement of 6.85%.
Also on offer is a AA’-rated, $4 million class B-1 tranche; A’-rated, $3.4 million class B-2 tranche; BBB’-rated, $4.2 million class B-3 tranches; and $3.3 million of BB’-rated, class B-4 notes.
The structure will also offer a series of exchangeable certificates, as well as interest only tranches that have been rated AAA’.
The notes are backed by 398 prime residential mortgage loans with a total principal balance of $287 million as of Jan. 1, 2014. The mortgage loans were acquired by DLJ Mortgage Capital. New Penn Financial originated 80.9% of the mortgages in the securitized pool.
JP Morgan is also marketing a $373 million non-agency RMBS deal. According to Standard & Poor’s, the deal dubbed JPMMT 2014-1, is backed by first lien prime jumbo mortgages.
S&P said it expects prime jumbo RMBS issuance to reach $25 billion of securitization in 2014, compared to $13 billion issued last year.