The bank has established an issuance routine of about one transaction per quarter, each roughly $250 million.
Although Darien Rowayton is a community bank based in Darien, Conn., it originates its education loans nationally through an online service that competes with shops including CommonBond, Earnest, and Social Finance. To date, it has written more than $1.4 billion of student loans via the internet.
Darien Rowayton’s latest securitization – a $188 million transaction that priced Feb. 26 via underwriter Credit Suisse – is underpinned by loans to borrowers with an average credit score of 768.
And despite bond-market turmoil that has caused spreads on many other instruments to widen in recent months, Darien Rowayton achieved better pricing on last week’s deal than it did on its previous offering. The bank paid a 3.08% coupon for 4.4 year fixed-rated notes rated A/AA by Moody’s and DBRS, compared to 3.2% for a similar paper it sold on Dec. 4. The bank generally retains the deal subordinate tranches.
Darien Rowayton is led Gary Lieberman, a former Bear Stearns mortgage specialist who founded hedge fund shop West Side Advisors more than 20 years ago.
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