Industry News

IndyMac sells $590 million in Alt-A MBS

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IndyMac Bank last week sold $590 million in bonds backed by prime jumbo loans, the company said Monday -- the first bonds the lender has traded since July 19, when "fear-induced illiquidity" froze the market. In a statement posted on the official company blog, IndyMac communications director Grove Nichols said the bonds traded Friday sold at prices below "historical ranges" but at smaller discounts than "fire sale" trades conducted by other lenders in recent weeks. IndyMac traded $240 million of AAA bonds backed by prime jumbo fixed-rate mortgage loans and $350 million of AAA bonds backed by prime jumbo adjustable-rate mortgage (ARM) loans "We are encouraged by these sales as they represent the first small sign that the ice is beginning to melt, and some modest liquidity is beginning to return to the private-label mortgage market," the statement said. "It appears as though, given the current historically wide spreads, significant tightening of underwriting standards by l...