NEW YORK--(BUSINESS WIRE)--Odeon Capital Group LLC (“Odeon”), the independent fixed income broker dealer with investment banking and research services, today released a primer on the Countrywide Revolving Home Equity Loan Shelf offering (CWHEL). The report highlights the strengths and weaknesses of this particular shelf registration and how they affect the price, yield and weighted average life of the emerging asset class.
A subject of tremendous attention from traditional as well as non-traditional ABS/MBS investors in recent years, the CWHEL shelf offers diverse performance metrics across the second lien sector, according to Ankur Makhija, a senior research analyst at Odeon.
“Non-traditional ABS/MBS investors can utilize second lien wrapped bonds such as the CWHEL shelf to invest in the housing market,” said Makhija. “Prudent investing in CWHEL bonds may provide investment opportunities that are simply not available in other ABS/MBS asset classes.”
To the traditional ABS/MBS investor, this shelf and the second-lien residential mortgage-backed securities asset class (comprising closed-end second-liens and home equity lines of credit as collateral) have increasingly drawn interest due to disappointing collateral performance and credit complications with the backstop function traditionally provided by most monolines. “We believe that CWHEL bonds’ double digit risk-adjusted yields provide an attractive risk/reward for investors,” said Makhija.
The full research document is available upon request at www.odeoncap.com/contact.
Odeon’s research capabilities serve to provide specific, actionable and thoughtful investment analysis. The backbone of the firm’s capabilities in sales, trading and investment banking, Odeon’s diversified research publications are a source of guidance to the firm’s clients and provide a comprehensive look at the underlying asset performance metrics across a variety of asset classes.
About Odeon Capital Group LLC
Odeon Capital Group LLC (Member FINRA, SIPC and MSRB) is an independent full-service broker dealer and investment banking firm providing advice and execution on fundamental value and catalyst-driven situations through sales & trading, research and investment banking. Odeon is a full-service boutique broker/dealer to institutional clients and offers transparent, timely and complete services from origination through execution of experienced service that adds value in all markets. Odeon Capital Group LLC is headquartered in New York City. Visit http://www.odeoncap.com for more information.