SAN FRANCISCO, July 21 /PRNewswire-FirstCall/ -- Luminent Mortgage Capital, Inc. today announced that its $2.5 billion securitization shelf, Lares Asset Securitization, Inc. has been deemed effective by the Securities and Exchange Commission.
"With our own securitization shelf in place, we expect to continue our highly successful prime loan securitization activities more economically," said Trez Moore, President and Chief Operating Officer. The Luminent name, already established in the market with six deals, totaling $3.6 billion, will remain the identifier of Luminent deals.
Luminent's loan securitizations are conducted as financing transactions in which Luminent achieves match funding on its purchases of prime quality mortgage assets. As a result, Luminent securitization cash flows are protected from interest rate volatility and the shape of the yield curve. Luminent deals have enjoyed excellent market reception. The AAA tranche of the most recent transaction, LUM 2006-5, priced at Libor plus 21 basis points, allowing Luminent to secure healthy and recurring cash flows over the five to six year expected life of the deal.
Luminent is organized and conducts its operations so as to qualify as a real estate investment trust for federal income tax purposes. Luminent's principal activity is to invest in mortgage-backed securities and loans, thereby providing capital to the single family residential housing market. Luminent's website can be found at http://www.luminentcapital.com/.
This news release and Luminent's filings with the Securities and Exchange Commission contain forward-looking statements that predict or describe future events or trends. The matters described in these forward-looking statements are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Luminent's control and are based on the information, including estimates, currently available to Luminent's management. Luminent faces many risks that could cause its actual performance to differ materially from the results expressed or implied by its forward- looking statements, including, without limitation, the possibilities that interest rates may change, that principal payment rates may change, that mortgage-backed securities or mortgage loans may not be available for purchase on favorable terms, that borrowings to finance the purchase of assets may not be available on favorable terms, that Luminent may not be able to maintain its dividend or the yield on its common stock, that Luminent may not be able to maintain its qualification as a REIT for federal income tax purposes, that Luminent may experience the risks associated with investing in real estate, including changes in business conditions and the general economy, that Luminent's recently adopted business strategy to purchase mortgage loans for securitization may not be successful, and that Luminent's strategies may not be effective (including portfolio management and hedging strategies and strategy to protect net interest spreads). Luminent's filings with the Securities and Exchange Commission contain a more complete description of these and many other risks to which Luminent is subject. Because of those risks, Luminent's actual results, performance or financial condition may differ materially from the results, performance or financial condition contemplated by its forward-looking statements. The information set forth in this news release represents management's current expectations and intentions. Luminent assumes no responsibility to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Contact: Christopher J. Zyda, Senior Vice President & Chief Financial Officer of Luminent, +1-415-217-4500, or