Key facts
- Point completed a $508.6 million rated securitization backed by home equity investment (HEI) assets.
- This transaction is the largest in the HEI market to date.
- The deal closed on July 15 and attracted over 30 institutional investors.
- Funding costs decreased, with spreads on BB (low) (sf) bonds narrowing by more than 220 basis points.
- The securities received ratings from Morningstar DBRS.
Point announced the completion of a $508.6 million rated securitization backed by home equity investment (HEI) assets, marking the largest transaction in the HEI market to date. The deal, which closed July 15, is Point's eighth rated securitization and its second of 2026. More than 30 institutional investors participated, including eight first-time investors. Point stated that funding costs declined significantly from its previous securitization in February, with spreads on the BB (low) (sf) bonds narrowing by over 220 basis points. Eddie Lim, co-founder and CEO of Point, highlighted the investment community's confidence in the asset class and Point's origination quality. The securities were issued through Point Securitization Trust 2026-2 and received ratings from Morningstar DBRS. The issuance comprised $328.6 million in senior Class A-1 notes rated A (low) (sf), $70.7 million in Class A-2 notes rated BBB (low) (sf), $44.5 million in Class B-1 notes rated BB (low) (sf), and $64.8 million in retained Class B-2 notes rated B (sf). Collateral was contributed by eight purchasers, including Tacora Capital Management and Deer Park Road Management. Barclays Capital served as the sole structuring agent, with Barclays, Nomura Securities International, and Cantor Fitzgerald as joint bookrunners. East West Markets and StoneX Financial served as co-managers.