Buckhead One Financial Opportunities Announces $216 Million Securitization of Community Bank Subordinated Debt
ATLANTA--(BUSINESS WIRE)--Apr 4, 2019--Buckhead One Financial Opportunities, LLC (“Buckhead One”), announced its completion of BFNS 2019-1, a $216 million securitization of subordinated debt of community banks from across the United States. The Buckhead One management series is the collateral manager for the securitization with assistance from Angel Oak Capital Advisors, LLC, which acts as a service provider.
The senior tranche of BFNS 2019-1 received an “Aaa (sf)” rating from Moody’s. The securitization comprises 38 individual issuers, with over 90% of the notional value invested in community banks with less than $10 billion in assets. The banks included in the transaction are geographically diverse, with no individual name holding more than a 5% position.
“From a credit-quality perspective, we view the community banking sector as very favorable, offering a unique opportunity in an underserved market,” said Navid Abghari, CEO of Buckhead One. “The success of our first deal showed us investors are eager to get more involved in this space. In today’s market, fixed-income investors are searching for new areas to deploy and grow their capital, and this is an area that continues to gain more interest.”
Buckhead One’s experience in analyzing community bank debt is extensive. In formulating BFNS 2019-1, the management series used its proprietary BankSURF model that assesses the credit quality of U.S. banks. Community bank debt issues often go unrated due to the high cost of obtaining a rating for smaller institutions with correspondingly smaller-sized deals.
“BankSURF delivers a formulaic approach that puts us ahead of the curve when it comes to analyzing this sector. It allows us to analyze a range of investable information as we navigate the bank subordinated debt market,” said Johannes Palsson, CIO of Buckhead One.
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KEYWORD: UNITED STATES NORTH AMERICA GEORGIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING CONSULTING FINANCE
SOURCE: Buckhead One Financial Opportunities, LLC
Copyright Business Wire 2019.
PUB: 04/04/2019 03:10 PM/DISC: 04/04/2019 03:10 PM