With home price appreciation on the downturn, widespread record-tight ABS spread levels and stricter credit enhancement levels now in place on certain home equity loan deals, GSC Partners picked a fine time to launch a pair of CDOs referenced to home equity loans and make its debut as an RMBS issuer. Despite such apprehensions, the company recently priced and completed deals totaling nearly $2 billion.
To concerns of a weakening housing market, and its eventual effect on real estate ABS, GSC Partners has a simple answer: Do plenty of good old-fashioned homework. Simplistic as it may sound, digging deep into the plethora of information on the residential mortgage market has earned the Florham Park, N.J.-based investment advisor a reputation as a CDO issuer accustomed to turning out spotless deals. The company recently expanded its role to RMBS issuer, with a pair of deals totaling $857 million in April.