Firm Launches 1st RE-Backed Synthetic GIC

A nonconforming mortgage specialist and investment manager has launched what it says is the first real estate-backed synthetic guaranteed investment contract in the market.Larry H. Mylnechuk, a principal at Residential Capital Management LLC, told attendees at a State Street Global Alliances roundtable in New York that the company has signed one account for the new investment product it created and is working to sign a second by the end of the first quarter. Residential Capital is one of the asset managers SSGA supports by providing strategic operating capital, managerial support, and distribution as part of its goal to increase the value of its portfolio companies and offer a wider array of investment products to its institutional client base. SSGA can be found online at http://www.ssga.com.