CEO points to strong institutional appetite
Angel Oak’s investment management firm has issued its 50th non-agency mortgage securitization, a $413.4 million deal.
“The revival of the securitized mortgage credit space has been nothing short of incredible, especially given how far we’ve come in just under 10 years,” said Sreeni Prabhu, co-CEO and managing partner of Angel Oak Capital Advisors. “The issuance of our 50th securitization reflects our leadership as one of the few consistent issuers in the space.”
Over the past decade, the firm has securitized around $18.5 billion in non-qualified mortgage (non-QM) loans, representing more than 42,000 individual loans.
Namit Sinha, AOMT managing director and chief investment officer, highlighted growing demand from institutional investors.
“As we look at the current macroeconomic environment, we’re energized by the potential we see to deliver for our investors and by our strong, forward-looking position in this space,” Sinha said in the company’s media release.
Beyond non-QM securitizations, Prabhu said the firm is also seeing growing interest in customized strategies, including whole loan separately managed accounts, to meet increasing demand for residential mortgage credit exposure.
“We work with some of the world’s largest insurance companies, pensions, sovereign wealth funds and other institutional investors that are eager to deploy capital into these securitizations or similar whole loan strategies,” he said.
In March, Angel Oak expanded its offerings with a new mortgage product targeting insurance companies.
The initiative provides insurers access to newly originated and secondary residential mortgage loans through customized separately managed accounts (SMAs). The move comes as insurance companies look for higher-yielding alternatives to traditional corporate bonds and commercial real estate investments.
Angel Oak noted that insurers have largely underinvested in the residential mortgage market for more than a decade, presenting a timely opportunity. The firm has already secured a $200 million commitment from an unnamed insurance company for the initiative.
Across its various private debt strategies, Angel Oak can deploy up to $5 billion in non-qualified loans, second-lien mortgages, home equity lines of credit (HELOCs), and agency mortgage purchases. Additionally, the firm plans to launch a securitization primarily focused on HELOC loans later this year.
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