Alternative asset manager Canyon Partners is committing $250 million to buy new mortgage bonds created by A&D Mortgage LLC, a partnership that will help the mortgage finance company substantially increase the pace of its bond sales.
Canyon will buy the riskiest slices of residential mortgage-backed bonds ineligible for guarantees from Fannie Mae and Freddie Mac, enabling A&D to create some $5 billion of the deals known as non-qualified securitizations, according to a statement.