StoneX and DeltaTerra Develop New Synthetic Structure for Agency Credit Risk Transfer

StoneX Financial Inc. and DeltaTerra Investments announced a synthetic credit risk transfer (CRT) transaction referencing Agency CRT securities from Fannie Mae's CAS program and Freddie Mac's STACR program. The structure uses a credit default swap framework to provide institutional investors alternative exposure to mortgage credit risk. DeltaTerra noted that approximately $19 billion of CRT bonds become eligible for call by end of Q3 2027, representing 44% of the outstanding market, positioning this transaction as a response to an anticipated supply inflection point.