StoneX Financial Inc. and DeltaTerra Investments have executed a synthetic credit risk transfer transaction designed to provide institutional investors with alternative exposure to agency mortgage credit bonds. The structure, announced September 10, 2026, references securities issued through Fannie Mae’s Connecticut Avenue Securities program and Freddie Mac’s Structured Agency Credit Risk program, offering investors a customized credit default swap framework as an alternative to direct cash bond ownership.
- Eligible CRT Bonds: Approximately $19 billion will become callable by the end of Q3 2027
- Market Share: Represents 44% of the outstanding CRT market
- Transaction Type: Synthetic credit default swap with customized investment structure
- Economic Exposure: Linked to principal paydowns, credit performance, and spread income
The structure provides exposure to specified characteristics of referenced securities while creating flexibility as market conditions and portfolio needs evolve. StoneX served as structuring advisor and coordinated execution alongside DeltaTerra and other market participants. The framework was designed for repeatability, establishing a foundation that can scale with changing investor demands.
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.
DeltaTerra’s Chief Investment Officer, Dave Burt, noted the firm’s ability to access both long and short exposures to mortgage credit markets positions it as a natural counterparty in this emerging marketplace. The transaction reflects StoneX’s expansion of its institutional ecosystem, combining specialized structuring expertise with broader market capabilities to address evolving client needs in structured credit.
Dave Burt, Chief Investment Officer at DeltaTerra. Source: LinkedIn
