State Street Global Alliance, the joint venture between State Street Global Advisors and Dutch pension fund ABP, has acquired a majority interest in US based Residential Capital Management, for an undisclosed ammount.
Residential Capital Management, based Washington state, is a recently formed asset management firm that provides professionally managed portfolios of nonconforming mortgages. The deal is the joint venture’s first investment.
Residential Capital Management was the first US money manager to offer institutional investors an actively managed approach to nonconforming residential mortgages. Nonconforming mortgages have been offered to borrowers whose credit profile does not conform to US underwriting standards. These mortgages usually offer interest rates of 2% to 4% over conventional mortgages, which makes them attractive to investors.
State Street Global Alliance was launched last month. Its purpose is to plant seed capital in fledgling speciality asset management firms, allowing SSgA and ABP to expand and add to existing investment capabilities. As a member of the Alliance, Residential Capital will specialize in active management of portfolios that are comprised of nonconforming, residential mortgage loans.
By Geoffrey Ho
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.