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-Barclays to manage Redwood mortgage-backed bond issue.

BANKING AND CREDIT NEWS-March 23, 2012--Barclays to manage Redwood mortgage-backed bond issue(C)2012 M2 COMMUNICATIONS

23 March 2012 -- Barclays Plc (LON:BARC) has been appointed as a manager for a planned sale of securities linked to a USD328m (EUR248.5m) package of new US home loans held by US mortgage financier Redwood Trust Inc (NYSE:RWT), Bloomberg reported on Thursday.

According to Kroll Bond Rating Agency, the underlying 30-year fixed-rate loans have an average balance of USD895,998 and their loan-to-value ratios are 63.5%. The securities' borrower credit scores average 768 on a scale from 300 to 850. Some 10% of the mortgages provide borrowers with the possibility to pay only interest for 10 years. The borrowers have an average verified income of some USD44,000 a month.

Overall, Kroll said in a pre-sale report that it would assign top rankings to USD305m of Redwood's debt.

Kroll analysts were quoted by Bloomberg as saying that Redwood was interested in maintaining high loan quality as it held an interest in the securitisation by owning subordinate securities.

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Publication:M2 Banking & Credit News (BCN)
Date:Mar 23, 2012
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