A recent Bloomberg article reports that JPMorgan has structured a first-of-its-kind resecuritization using mortgage bonds tied to Freddie Mac’s Small Balance Loan program. This effort was made possible through contributions from Axonic Capital, which provided all 18 underlying B-Pieces in the $500M transaction. This marks the first time this category of Freddie Mac debt has been re-packaged and rated.
“Our motivation was to take advantage of the strong demand for mortgage credit, in particular multifamily debt,” said Matt Weinstein, Axonic’s Co-CIO, in an interview with Bloomberg. The resecuritized pool includes loans secured by smaller apartment buildings, a segment supported by persistent tenant demand and limited new supply.
Weinstein also noted that Axonic owns roughly half of all B-Pieces linked to Freddie Mac’s small balance loan program, a reflection of the firm’s long-standing focus in commercial real estate credit and structured products.
To read the full article, click here. For more on how Axonic is engaging with multifamily credit and mortgage-backed securities, reach out to our team.