Saxon Mortgage Inc. will come to market one more time before year's end with a home equity deal, according to Brad Adams, vice president of securitization at Saxon.
"Saxon has secured execution for all their fixed and floating rate production for the rest of the year," said Adams.
Though unable to disclose most specifics, Adams did say the deal will be structured differently than previous transactions. He explained that the bonds will be sold in November, through two public offerings.
"We've split them," Adams said. "One's going to be floating. One's going to be fixed. Usually we do them together."
The deals will be managed individually, Adams explained, with a different underwriter for each offering.
"This was just an end-of-the-century strategy," said Adams. "I can't say that we'll do this going forward. We kind of felt that there were unique circumstances and some unique opportunities to take advantage of."
Adams added that Saxon has already gotten some forward commitments from the buyside.
Saxon last priced a transaction on Aug. 6, a $850 million home equity deal structured in 16 parts. Merrill Lynch & Co. managed that offering. Saxon's first and second quarter deals were $509 million and $474 million, respectively, also backed by home equity loans.
"We were very pleased with what we were able to get done [this year]," said Adams. "We've been able to come out of it pretty well - really getting lucky with timing in the second quarter - and then having the ability to sell forward into the fourth quarter."