EJF Investments, through its wholly owned subsidiary, invested approximately $17.0m in the preferred shares issued by TruPS Financials Note Securitization 2017-2 Ltd yesterday.
TFINS 2017-2 is a securitisation of approximately $340.4m of trust preferred securities, senior notes, subordinated notes, and surplus notes issued by 29 US community banks and 23 US insurance companies with an aggregate par value of approximately $353.0m.
The underlying securities have a fixed-rate weighted average coupon of approximately 7.7% and a floating-rate weighted average spread of approximately 3.1%.
The weighted average life of the underlying securities is approximately 11 years.
TFINS 2017-2 has a final maturity date of September 2039, but will be callable beginning in 18 months from issuance at the option of the preferred shareholders, with mandatory auction calls beginning after eight years.
EJFI said anticipated return scenarios estimated that the risk retention investment would generate a gross return in the low double digits over the estimated life of the investment.
It also said that during the month of October the company sold four positions in its legacy REIT TrupS CDO portfolio, contributing a gain for the month of approximately $1.9m.
At 9:21am: (LON:EJFI) EJV Investments Ltd share price was 0p at 151p