Credit Suisse Group AG (CS:US) is seeking to sell $407.4 million of securities tied to new jumbo U.S. home loans without government backing in the third deal of the type this year, according to three people familiar with the matter.
The bank is marketing the bonds, which it expects to receive top ratings, to pay a spread of 0.97 percentage point more than benchmark swaps, according to the people, who asked not to be identified, citing a lack of authorization to speak publicly.
Credit Suisse is teaming with Two Harbors Investment Corp. (TWO:US) on the approximately $430 million securitization, the people said, with the real-estate investment trust set to buy junior- ranked debt created in the deal and provide some of the underlying loans.
Drew Benson, a spokesman in New York for Credit Suisse, and July Hugen of Minnetonka, Minnesota-based Two Harbors didn’t immediately return messages seeking comment on the deal.
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