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Merchants Capital Completes Credit Risk Transfer on $543M MF Loans
Merchants Capital has executed a $543.5 million Credit Risk Transfer (CRT), secured by 41 performing multifamily bridge loans. This is the second multifamily CRT and the third overall completed by Merchants’ Capital Markets platform, which has executed nearly $4 billion in securitizations.
The transaction was structured as a Credit Default Swap, with $76 million in credit protection purchased from a large institutional investor as a first-loss risk transfer. Bridge loans from 53 properties are included in the portfolio, which includes 7,040 units from 14 states, with the largest concentrations located in Indiana, South Carolina and Illinois.
“The Capital Markets team continues to add value, demonstrate innovation and fuel lending across Merchants Capital,” said Evan Gibson, Executive Vice President, Capital Markets at Merchants Capital. “We are very pleased with the growth of our platform and efficiency in providing capital relief, which provides Merchants Capital with capacity for additional loan growth.”
