Merchants Capital has successfully completed a $543.5 million Credit Risk Transfer (CRT) through the securitization of 41 performing multifamily bridge loans. This marks the second multifamily CRT and third overall transaction executed by Merchants’ Capital Markets platform, which has achieved a total of nearly $4 billion in securitizations.
The deal utilized a Credit Default Swap structure, with an institutional investor purchasing $76 million in credit protection as first-loss risk transfer. The portfolio includes bridge loans from 53 properties across 14 states, comprising of 7,040 units. The largest concentrations are located in Indiana, South Carolina and Illinois.
Evan Gibson, Executive Vice President of Capital Markets at Merchants Capital expressed his satisfaction with the growth and innovation demonstrated by their team in providing capital relief for lending purposes. He also highlighted the efficiency that this brings to their platform while creating capacity for further loan growth opportunities.
