Conti Prices $2.1B Home Equity Deal

ContiMortgage Corp., New York, has priced a $2.1 billion securitization of home equity loans.ContiMortgage Home Equity Loan Trust 1998-3 is structured with 22 tranches and a combination of subordinated classes and a surety wrap for credit enhancement. All the class A tranches were priced at or near par, while classes B-1 and B-2 were priced at 96.5 and 97.2, respectively, ContiMortgage said. Yields range from 5.55% to 6.382% for the class A fixed-rate tranches and from 16 to 32 basis points over the London Interbank Offered Rate for the adjustable-rate tranches. The yield on the class B tranches is 9.05%. The trust also issued two interest-only classes, priced to yield 6.21%. The lead underwriter was Morgan Stanley Dean Witter. Co-managers were: Bear, Stearns & Co. Inc.; ContiFinancial Services Corp.; Credit Suisse First Boston; Greenwich Capital Markets Inc.; Merrill Lynch & Co. Inc.; and NationsBanc Montgomery Securities.