StoneX Financial Inc and DeltaTerra Investments today announced the execution of a synthetic credit risk transfer (CRT) transaction referencing Agency CRT securities issued through Fannie Mae’s Connecticut Avenue Securities (CAS) program and Freddie Mac’s Structured Agency Credit Risk (STACR) program.

The transaction offers institutional investors additional mortgage credit capacity and an efficient structure to access the risk and return profile of Agency CRT bonds. Through a customized credit default swap framework and related investment structure, investors can gain exposure linked to specified CAS and STACR securities, providing an alternative mechanism for managing Agency CRT exposure as market conditions and portfolio needs evolve.

Matt Spoerlein, Co-Head of Structured Credit Trading at StoneX commented:

“This transaction reflects continued evolution of the CRT market and demonstrates StoneX’s ability to apply innovative structuring expertise to complex market opportunities. Working in partnership with DeltaTerra, we applied that expertise to develop a successful structure–creating an alternative to direct cash bond ownership that can be tailored to an investor’s exposure and portfolio objectives. Importantly, the framework was designed with repeatability in mind, providing a foundation that can scale alongside changing investor needs and market conditions.”

Dave Burt, Chief Investment Officer of DeltaTerra said:

“We believe the Agency CRT market is approaching a meaningful supply inflection point. This transaction provides an alternative way to access that risk as market dynamics and investor demands change. Our investment process is built on the ability to go both long and short systemically important mortgage credit markets, positioning us as a natural counterparty on the ‘other side’ of this new marketplace.”

The structure is designed to provide economic exposure linked to specified characteristics of the referenced securities, including principal paydowns, credit performance and spread income. StoneX served as structuring advisor, working with DeltaTerra and other market participants to develop the transaction structure and coordinate its execution. The transaction reflects StoneX’s continued expansion of its institutional ecosystem, bringing specialized structuring expertise together with broader market capabilities to develop solutions around evolving client needs.