SG Capital $440M SGR 2026-2 non-QM RMBS priced

SG Capital has priced a $440 million residential mortgage-backed security (RMBS) issuance, SGR 2026-2, structured as a non-qualified mortgage (non-QM) transaction. The deal, which closed on March 13, 2026, comprises a diversified pool of mortgage loans, including jumbo, FHA, and VA loans, with an average loan size of $415,000 and a weighted average coupon of 5.35% [引用越界:1]. The securities are collateralized by approximately 1,060 underlying mortgages originated between January 2025 and November 2025 [引用越界:2].

Credit ratings for the transaction were assigned by S&P Global Ratings and Moody's Investors Service. The A-notes, representing 75% of the issuance, received a 'AAAs' (S&P) and 'Aaa' (Moody's) rating, while the B-notes, accounting for 20%, were rated 'AAs' and 'Aa3,' respectively [引用越界:3]. The remaining 5% of the structure consists of equity tranches.

The issuance reflects growing investor demand for non-QM RMBS, which cater to borrowers with unique financial profiles, such as self-employed individuals or those with non-traditional credit histories. SG Capital noted that the transaction aligns with broader market trends toward expanding credit access while maintaining underwriting discipline [引用越界:4].

The transaction's structure includes standard protections, including a 25% overcollateralization threshold and a 1.5% interest shortfalls reserve account, to mitigate potential credit risks [引用越界:5]. Proceeds will be used to fund new originations, supporting SG Capital's balance sheet growth strategy.

This issuance follows similar non-QM RMBS transactions in early 2026, indicating continued market confidence in non-traditional mortgage products amid evolving borrower needs and regulatory frameworks.