The investors, meanwhile, may benefit from a more stable duration profile. This allows Waterfall to fund additional eligible collateral for two years, investing in similar assets as repayments occur. “This deal was backed by what we believe are high quality assets, met with solid investor demand, and was syndicated to over 10 accounts.” The deal was also the first to consist entirely of active assets, and only the second securitization to include active assets, a departure from a market that has consisted largely of NPLs and inactive assets.Ī third feature that caught the market’s eye was the 24-month reinvestment period – a first for a transaction backed by home equity conversion mortgages which are reverse mortgages that are insured by the Federal Housing Administration. “The reverse mortgage sector was as resilient, or even more resilient, than broader structured markets throughout the pandemic, driven in part by the fact that reverse mortgage borrowers typically are not required to make principal and interest payments,” says Geraghty. The $285.8m CFMT 2020-AB1, with Nomura as sole structuring agent and bookrunner, stood out in several ways.
Reverse mortgage deals are relatively rare, but have become a specialty for Waterfall, which has issued 12 reverse mortgage securitizations since 2013 with over $5.4bn of collateral balance.
The firm brought three RMBS deals to market in 2020 following the pandemic outbreak, but it was the Cascade Funding Mortgage Trust (CFMT) 2020-AB1 that was voted the stand-out deal of the year. In 2021, lending through Funding Circle's UK platform is estimated to have contributed £7.2bn to GDP and supported 100,000 jobs.The residential mortgage sector has been a core focus for the company since it was founded in 2005, says Tim Geraghty, Waterfall’s head of capital markets. This is providing small businesses with the fast and simple access finance they need to grow and power the economy. £14 billion to approximately 120,000 businesses globally. A wide range of investors are utilising this technology and distribution platform to lend c. Founded in 2010, its market-leading and unparalleled instant decision lending technology enables small businesses to apply for finance in an average of six minutes, with lending decisions in as little as nine seconds. These public capital market transactions are further recognition of the platform’s ability to open up deep and diverse pools of capital to small businesses, creating more choice and competition in the small business lending market.įunding Circle is the UK’s largest loan platform for SMEs. Waterfall’s initial £1bn investment in 2018 included multiple securitisations. Waterfall will lend through the platform alongside a wide range of investors, including banks, asset management companies, insurance companies, government-backed entities, individuals and funds. This seamless functionality is helping provide small businesses with fast and simple access to finance, allowing them to grow and power the economy.
These provide Waterfall with a highly efficient and cost-effective mechanism to deploy capital to the real economy.įunding Circle’s market-leading and unparalleled instant decision capabilities enable small businesses to apply for finance in an average of six minutes, with lending decisions in as little as nine seconds. More than a decade of investment and innovation in Funding Circle’s technology and data capabilities has created powerful machine learning models. The partnership leverages Funding Circle’s technology and distribution platform to deploy new funding to UK small businesses, continuing Waterfall’s support for UK SMEs. The partnership will leverage the platform's machine learning capabilities to deploy new funding to UK small businesses over a two-year period.įunding Circle, the UK’s largest small business loan platform, and Waterfall, a leading institutional asset manager, today announce a lending partnership that will provide £1bn of new funding to small businesses.
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