Home Equity FinTech Lenders Viewworking with its long-term financing partners Atalaya Capital Managementhas successfully completed a US$141 million rated asset-backed securities transaction.
The securitization, which was completed on May 15, marks Point’s second rated securitization and its third overall transaction in the secondary market, with all securities secured from Morningstar Database RS.
Point originated all of the Home Equity Investments (HEIs) participating in the securitization and will continue to service these assets. Notably, this transaction is the first HEI securitization transaction to sell high-risk BB-rated securities, reflecting strong investor demand as the transaction was oversubscribed.
“The HEI asset class has seen incredible momentum over the past few months,” Point co-founder and CEO Eddie Lim said in a statement. “The investment community has seen higher education institutions perform beyond expectations. , and is embracing the product at scale. The overwhelming response to our latest securitization shows that there are more great things to come for Point, the homeowners we serve, and the HEI category as a whole.
Since Morningstar DBRS released its higher education institution rating methodology in July 2023, growth in rating securitization has accelerated in the higher education institution sector.
Nomura Securities International is the exclusive structuring agent for this offering. Nomura, Barclays Capital and Performance Trust Capital Partners is the joint bookrunner for the transaction, and thing market and Cantor Fitzgerald Company was co-manager on the deal.
November 2023, Sequoia Trust Worked with Point to complete a $139 million bond secured by 1,577 home equity investment contracts.
