- OceanFirst Financial and 400 Capital Management are innovating a strategy based on credit-linked notes to help regional banks obtain mortgage capital relief in the U.S.
- They applied this structure to a $1.5 billion portfolio of residential mortgages through a credit default swap and linked notes, enabling banks to manage capital without diluting equity.
- The companies believe this approach will provide flexible, non-dilutive capital relief solutions and may serve as a model for future transactions.
