Brean Capital is making a push for participation in the investor market for reverse mortgage securities.
The HMBS team team comprises former Knight Capital HMBS team members Bryan Faron and Vanessa Warren as well as Jonathan Haley and Sandy Tennekoon.
The independent investment bank and asset management firm was founded in 1973 and offers services in equity research, corporate finance, investment banking, equity institutional sales and trading and asset management.
The company is based in New York with an additional presence in Beijing.
“The company likes the niche aspect of the reverse mortgage market and sees several opportunities for growth,” Faron says. “The HECM product has many interesting features. Since the current production mix is predominantly floating rate, investors receive embedded extension protection, especially when moving into a higher interest rate environment.”
Brean has been mum on specific plans, but says it is interested in the space and the market potential right now.
“The reverse mortgage program is undergoing various changes that will ultimately have a positive impact on the entire industry,” Faron says. “We’ve found this as a good opportunity to get involved.”
Written by Elizabeth Ecker