STAMFORD, Conn.--(BUSINESS WIRE)--Fifth paragraph, first sentence of release should read: $303.4 million securitization (instead of $232.9 million securitization).
The updated release reads:
HILDENE CAPITAL COMPLETES $333 MILLION NON-QM LOAN SECURITIZATION
Hildene Capital Management, LLC (“Hildene”), a $14.5 billion credit-focused asset manager, announced the close of CROSS 2023-H2, a $332.8 million securitization backed by non-qualified residential mortgage (“non-QM”) loans originated by CrossCountry Mortgage (“CCM”), one of the largest retail residential mortgage originators in the U.S.
CROSS 2023-H2 is collateralized by a pool of 656 first lien residential mortgages, almost 100% originated by CCM, featuring a weighted average FICO score of 739 and 70.9% loan to value. The majority of the loans were originated for newly purchased owner-occupied homes. CROSS 2023-H2 offered five tranches with four senior bonds paying principal pro rata and a sequential mezz bond. Fitch and Kroll rated the transaction investment grade, ranging from AAA to BBB.
“We are pleased to scale our relationship with CrossCountry Mortgage through the close of CROSS 2023-H2,” said Justin Gregory, Portfolio Manager at Hildene. “Our ability to secure strong pricing for this securitization underscores Hildene’s ability to execute on unique risk-adjusted investment opportunities for our clients amid a challenging market.”
In 2022, Hildene and CCM entered into a multi-year strategic relationship, providing Hildene exclusive access to certain non-QM originations from the CCM platform. The relationship provides Hildene with exclusive access to scalable, high credit quality non-QM loans, which Hildene and CCM collaborate to securitize.
CROSS 2023-H2 is Hildene’s largest securitization of non-QM loans, following a $303.4 million securitization of CROSS 2023-H1 in July 2023. Hildene expects to complete its next non-QM securitization in 1Q24.
Goldman Sachs structured the deal, with Altas SP Partners participating as joint lead.
About Hildene Capital Management
Hildene Capital Management, LLC (“Hildene”) is an alternative asset manager with $14.5 billion in assets under management, specializing in opportunistic and complex credit investing through structured and private credit strategies. Hildene invests through hedge fund, drawdown, SMA, insurance and securitization vehicles, with a strong focus on maximizing returns through event-driven strategies. The firm’s investment process extends above and beyond traditional market valuation and utilizes rigorous analysis and research to examine the value of a particular option, structure and asset. Hildene was founded in 2008 and is based in Stamford, CT. For additional information, please visit www.hildenecap.com.