Global structured deal of the year 2013: STACR 2013-DN1
|Lead Arranger and sole bookrunner||Credit Suisse|
|return to the Deals of the Year 2013 index|
While the Twitter float was news across the world, another of Euromoney’s deals of the year took place in a far more esoteric corner of the market. It is not often that a structured-finance transaction attracts almost universal praise from competitors across the market, but Freddie Mac’s Structured Agency Credit Risk (STACR) did just this in June last year. And in many ways its impact is far greater than that of the much more discussed Twitter deal.
Since 2007 the US mortgage market has come to resemble a nationalized industry as private-label mortgages have all but disappeared and the Fed purchases $40 billion of agency MBS a month as part of its monetary easing strategy. With $5.5 trillion of GSE-guaranteed RMBS outstanding by mid-2013 the need for a government exit strategy from the mortgage markets had become acute. Indeed, as part of its strategic plan for the GSE conservatorships,the Federal Housing Finance Agency directed Freddie Mac and Fannie Mae to explore alternatives to promote risk sharing between themselves and other market participants.