Pursuits
Investors Cool to Private Securities Slowing Revival: Mortgages
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Investors’ rekindled passion for sales of private mortgage securities is cooling.
Yields on $397.3 million of top-rated securities sold yesterday by Redwood Trust Inc. were 175 basis points more than benchmark swap rates, up from 170 basis points on bonds it sold earlier this month and 97 basis points, or 0.97 percentage point in January. Sales this year of home-loan bonds without government backing have already surpassed the highest annual total since the debt sparked the global financial crisis.