Advanta Corp. announced last week that its wholly owned subsidiary, Advanta Mortgage Conduit Services Inc., had priced a $550 million loan securitization. Closing on the deal was expected Monday.
"The record size of this home equity transaction is reflective of the strong performance that we continue to experience in our home equity business," said Milt Riseman, president of Advanta Mortgage. "The use of the senior-subordinated structure demonstrates our ability to quickly react to changing investor preferences in order to achieve the lowest all-in cost of funds."
The issue includes fixed-rate and adjustable-rate segments. The effective pass-through yield on the AAA-rated, fixed-rate loans will be about 7.35%, while the yield on the AAA-rated adjustables will be 20 basis points over one-month Libor.