$145M Daiwa offering backed by RTC collateral - Daiwa Securities America Inc., Resolution Trust Corp - Brief Article

Real Estate Weekly, April 8, 1992

Daiwa Securities America, Inc. issued the first publicly-rated issue of home equity and home improvement loans with collateral purchased entirely from the Resolution Trust Corporation, in a transaction totalling $144,654,000.

The offering, Daiwa Mortgage Acceptance Corporation Asset-Backed Certificates, Series 1992-I, has two senior tranches: a $104,760,00 class backed by fixed rate loans and a $39,894,000 class backed by floating rate loans. Both are rated Triple-A by Standard & Poor's and Moody's. Payment of interest and principal is guaranteed by a surety bond from Financial Security Assurance (FSA).

The fixed rate class bears a coupon of 7.875 percent and the floating rate class carries a coupon of Libor plus 70 basis points. The weighted average life for the fixed and floating rate classes are 2.25 and 2.6 years, respectively.

There was also a privately placed $12 million subordinated class. The subordinated class cross-collateralizes both the fixed and floating rate senior tranches.

Collateral for the offering was originated from five failed savings and loan institutions being liquidated by the RTC. The 9,445 loans on single-family properties in 35 states were accumulated and funded by Daiwa over the last nine months.

ADVANTA Mortgage Corp USA will act as servicer. Bankers Trust Company of California, N.A., is the trustee.