Hildene Capital Management Finalizes $318.4 Million Securitization

Hildene Capital Management, LLC, a credit-focused asset manager with assets totaling $14.7 billion, has finalized the CROSS 2024-H1 securitization, valued at $318.4 million. This securitization is backed by non-qualified residential mortgage loans that were originated by CrossCountry Mortgage (CCM).

CROSS 2024-H1 is secured by a pool of 630 residential mortgages, all of which were originated by CCM. The loan pool boasts a weighted average FICO score of 738 and a loan-to-value ratio of 70.6%. The majority of these loans are for owner-occupied properties. 

Fitch assigned a rating of AAA-BBB to the senior investment grade bonds, while Kroll rated both the IG (investment grade) and Non-IG bonds down to BB. Goldman Sachs played a pivotal role in structuring the deal, with Atlas SP Partners acting as a joint lead and Piper Sandler and Nomura serving as co-managers.

“The close of our latest CROSS securitization underscores the opportunity we continue to see in the non-QM market,” said Justin Gregory, portfolio manager at Hildene. “We look forward to continuing our relationship with CrossCountry Mortgage this year to scale our securitizations in an effort to deliver quality, risk-adjusted returns for our clients.”

In 2022, Hildene initiated a multi-year strategic partnership with CCM, granting Hildene exclusive access to scalable, high credit, quality, non-QM loans sourced from the CCM platform.

CROSS 2024-H1 marks Hildene’s inaugural non-QM securitization of the year, following the successful completion of CROSS 2023-H2, a $332.8 million securitization in November 2023, and CROSS 2023-H1, a $303.4 million securitization in July 2023. Hildene and CCM plan to issue deals programmatically throughout 2024, further bolstering their presence in the market.