Capital Assets Weekly Comments


Tom McLemore
Whole Loan Secondary Market Status and Available Portfolios

The whole loan secondary market continues to be very active as institutions utilize loan sale and purchase transactions as part of an overall balance-sheet management strategy. For sellers, loan sales can be a very effective way to generate liquidity, reduce interest rate risk, address concentration issues, and increase earnings. Loan purchases provide an excellent opportunity for institutions with excess liquidity and low loan demand to supplement originations, enhance returns over comparable mortgage-backed securities and rebalance portfolios that have become concentrated. We have included details at the end of this article about three loan portfolios currently available for purchase from FTN Financial Capital Assets Corporation (“Capital Assets”).

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