StoneX and DeltaTerra complete synthetic agency CRT transaction

StoneX Financial Inc. and DeltaTerra Investments have executed a synthetic credit risk transfer transaction referencing agency CRT securities issued through Fannie Mae's Connecticut Avenue Securities program and Freddie Mac's Structured Agency Credit Risk program, according to a press release.

The transaction uses a customized credit default swap framework to give institutional investors exposure linked to specified CAS and STACR securities, offering an alternative to direct cash bond ownership. StoneX (NASDAQ: SNEX) served as structuring advisor and coordinated execution with DeltaTerra and other market participants.

According to data obtained by DeltaTerra from Intex and Bloomberg as of August 2026, approximately $19 billion of CRT bonds become eligible for call by the end of Q3 2027, representing approximately 44% of the outstanding market.

Matt Spoerlein, Co-Head of Structured Credit Trading at StoneX, said 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 the firm's 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 provides economic exposure linked to principal paydowns, credit performance, and spread income of the referenced securities.

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