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EJF invests in TruPS securitisation

EJF invests in TruPS securitisation – EJF Investments Ltd says that the company has invested approximately $17.0 million (approximately GBP12.9 million  based on foreign exchange rates reported for the day the purchase occurred) in the preferred shares issued by TruPS Financials Note Securitization 2017-2 Ltd on 26 October 2017. The preferred shares are the lowest ranked security in the securitisation.

TruPS Financials Note Securitization 2017-2 is a securitisation of approximately $340.4 million of trust preferred securities, senior notes, subordinated notes, and surplus notes issued by 29 U.S. community banks and 23 U.S. insurance companies with an aggregate par value of approximately $353.0 million.  The underlying securities have a fixed-rate weighted average coupon of approximately 7.7 per cent. and a floating-rate weighted average spread of approximately 3.1 per cent.  Additionally, the weighted average life of the underlying securities is approximately 11 years.

TruPS Financials Note Securitization 2017-2 has a final maturity date of September 2039, but will be callable beginning in 18 months from issuance at the option of the preferred shareholders, with mandatory auction calls beginning after eight years.  Anticipated return scenarios estimate that the preferred shares will generate a gross return in the low double digits over the estimated life of the investment.

In addition, during the month of October the company sold four positions in its legacy REIT TrupS CDO portfolio, contributing a gain for the month of approximately $1.9 million (approximately GBP1.5 million based on foreign exchange rates reported for the day the trades occurred).

EJFI : EJF invests in TruPS securitisation

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