Point, a home equity lending platform, just closed a $508.6 million securitization of home equity investment agreements, the largest transaction for the asset class.
Point Securitization Trust, series 2026-2, sold four tranches of notes to more than 30 institutional investors including eight participants who were new entrants to the asset class.
The deal closed on July 15 and was the first securitization of HEI assets to sell more than $500 million in notes, according to a company announcement and Asset Securitization Report’s deal database.
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It sold notes to investors at significantly lower funding levels. Spreads on the Morningstar DBRS-rated BB (low) (sf) bonds from the Point 2026-2 series improved more than 220 basis points savings compared to the similarly rated tranche from the Point 2026-1 deal that priced in February. Pricing on the Point 2026-2 was 6.349%, compared to 8.558% on the Point 2026-1.
The A1 coupon, rated (P) A (low) (sf), had a coupon of 5.25%, which priced at a spread to benchmark rate of 245 basis points, giving it an all-in yield of 6.584%, according to people familiar with the deal.
Notes are slated to mature on July 2056, according to analysts at Morningstar DBRS.
Barclays Capital is the deal’s sole structuring agent. Nomura Securities and Cantor Fitzgerald were joint bookrunners, while East West Markets and StoneX Financial were the deal’s co-managers, the company announced.