Having recently been approved to underwrite mortgage-backed securities, W.J. Bradley Financial Services is planning to do just that, according to President Kent Usell.
“The intent is to issue this year,” Usell said, adding that the size of the deal would likely be no less than $500 million and would probably be structured as a 144A. Following this transaction, the broker-dealer would eventually go through shelf registration for a public deal. “With all the Reg AB changes it makes sense to wait,” Usell said.
The firm, formerly called W.J. Bradley Investment Banking/Capital Markets, announced today that it had become a unit of W.J. Bradley Mortgage Capital, with Usell as president. Usell was managing director of Banc of Manhattan Capital. He has also served as senior vice president of ARM trading at Countrywide Securities Corporation.
“From a competitive perspective, a dedicated broker-dealer gives us a material strategic advantage,” said William J. Bradley, founder and CEO of W.J. Bradley, in a press release.
WJ Bradley originates prime residential mortgages. Its collateral accounted for more than 5% of the pool backing the last RMBS issued by REIT Redwood Trust under its Sequoia label.