Deal is notable for short duration, revolving structure
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Angel Oak Capital Advisors announced that it has completed a $90 million securitization backed by loans originated by Angel Oak Prime Bridge, the firm’s affiliated direct-investment property lender.
This is Angel Oak’s sixth mortgage securitization since 2015, bringing the total to more than $900 million.
The securitization, believed to be the first of its kind, consists of “fix-and-flip” loans issued by Prime Bridge to residential real estate investors. The securitization features an 18-month revolving period in which paid collateral is replaced with new collateral. The average loan balance in the securitization is $199,052, with original terms between six and 12 months.
“Investors are attracted by this product and its unique structure. The short-term nature of the collateral paired with an attractive yield makes for a rare opportunity in today’s investing climate,” said Sreeni Prabhu, Angel Oak co-CEO and CIO. “We believe we have one of the most diverse securitization platforms in the industry.”
Prime Bridge, which launched in 2011, provides an alternative to private/hard money and commercial bank loans for fix-and-flip residential real estate investors, most of whom renovate properties.
Angel Oak Capital Advisors is an investment management firm that works in fixed income with a specialization in mortgage-backed securities and other areas of structured and corporate credit. As of February 28, 2018, Angel Oak Capital Advisors had approximately $8.5 billion in assets under management across its mutual funds, private funds, and separately managed accounts.
