Warm welcome for GM’s mortgage unit issue
$4bn deal from Residential Capital Corp. is more than four times oversubscribed
The inaugural bond issue of Residential Capital Corporation (ResCap), the new separate home mortgage unit of General Motors’ financing arm, received an enthusiastic reception from the bond markets in June, as the $4 billion deal garnered demand of more than $17 billion from eager investors.
The $4 billion offering was split in three parts: $1 billion of two-year floating-rate notes at 137.5 basis points over three-month Libor, $2.5 billion of five-year notes at 262.5 basis points over Treasuries
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