The Federal housing Finance Board has approved a risk-based capital structure for the Federal Home Loan Banks. The system replaces the existing "subscription capital" structure. The goal of the risk-based rule is to provide capital for the FHLBanks to pursue new mission-related business opportunities, said FHFB Chairman Bruce Morrison. The proposed rule will have a 90-day public comment period upon publication in the Federal Register.
Advanta Conduit Receivables Inc. of Spring House, Pa., has completed a $400 million securitization of mortgage loans originated by Advanta National Bank and Advanta Bank Corp. Morgan Stanley Dean Witter managed the deal, with Bear, Stearns & Co. and Salomon Smith Barney co-managing the fixed-rate group. Prudential Securities Corp. co-managed the adjustable-rate group.