CENTURIA BASS FINANCES BEAUMARIS TOWNHOUSE DEVELOPMENT
Centuria Bass has financed a luxurious townhouse development at Tibbles Street, Beaumaris.
Completion will be before summer and each townhouse features four bedrooms, twin carpark, balcony, undercover entertainment area and inground swimming pool.
Tibbles Street is surrounded by golf courses, with Royal Melbourne and Sandringham a few minutes walk away. Jump in the car and it’s a five minute drive to Half Moon Bay beach and ten to Sandringham Yacht Club.
BASS PROPERTY CREDIT FUND DELIVERING 10% IRR
The Bass Property Credit Fund (BPCF) launched in November 2020 and was three-times over-subscribed with a first close of $105m.
Since then, over 80% of funds have been committed to 14 residential and commercial property loans across Australia. The portfolio is low risk, with 95% first mortgage or cash security, over 40% of loans secured by residential residual stock, and a loan-to-value ratio below 65%.
Distributions for Q1 are being paid now and second close is scheduled for June. Investor demand will be substantial, so please register your interest your interest at firstname.lastname@example.org
BASS WELCOMES CHARLIE ROBERTSON
Bass Capital is delighted to welcome Charlie Robertson to the team as an Executive Director, responsible for deal origination. Charlie has more than 20 years’ experience in origination, property development, investment and funds management.
Prior to joining Bass, Charlie was an Executive Director at Gresham Partners. He has also held senior roles at Toga and Multiplex. When he’s not in the office, Charlie likes to surf with his kids on the North Coast and spend time in the Byron Hinterland. Drop Charlie a line at
CENTURIA ANNOUNCES BASS CAPITAL JOINT VENTURE
Enables expansion into real estate debt markets
Providing real estate secured non-bank finance for development projects, bridge finance and residual stock
Bass Capital brings:
c.$270m committed loan book
$300m+ in pipeline opportunities
$107m open-ended debt fund
20 current debt funds backed by ultra and high-net-worth investors
The transaction will be accretive for FY22 earnings.
SYDNEY (Thursday, 22 April 2021) – Centuria Capital has secured a 50% investment in experienced real estate debt fund provider, Bass Capital.
The 50:50 JV will expand Centuria’s unlisted funds platform, providing a diversified suite of investment opportunities for its clients, while offering non-banking finance for real estate secured transactions including development projects, bridge finance and residual stock.
Bass Capital was established in 2016 by former UBS European Head of Leveraged Finance and Debt Capital Markets, Giles Borten, and former Managing Director of Wingate and Gresham Partners, Nicholas Goh, who will continue to lead the real estate debt team.
Jason Huljich, Centuria Joint CEO, said, “For the past three years we have partnered with Bass Capital across a number of lending opportunities and have confidence in the team’s abilities and its business model. Our investment in this platform is an opportunity to capitalise on strong demand from our high-net-worth investors for debt products, as they seek a diversified investment risk profile.
“This investment brings a new business line to Centuria, which helps expand our unlisted platform, diversify our recurring revenues and provide further investment opportunities to our investor clients.
“We whole-heartedly welcome Giles, Nick and the wider Bass Capital team to the Centuria fold.”
To date, Bass Capital has delivered an average internal rate of return (IRR) of more than 12% pa. Its strong financial performance has translated to an average 100%+ Compound Annual Growth Rate (CAGR) in EBITDA since the business was established.
The JV will begin operating with a c.$270m committed loan book, more than $300m in pipeline opportunities and a $107m open-ended debt fund.
Strong investment appetite recently saw Bass Capital significantly oversubscribed with $107million raised for the first close of its open-ended fund – the Bass Property Credit Fund – and $50m in estimated demand for the second close.
Giles Borten and Nicholas Goh, Bass Capital Founding Partners, continued, “We are very pleased to be joining the Centuria team to expand our debt offering. We will leverage Centuria’s Australasian scale, balance sheet and the team’s deep real estate relationships and expertise across traditional and alternative real estate sectors, to grow the platform significantly.
“To date, based upon the strength of our track record and how we have grown our investor base by word-of-mouth, we are excited to proactively deliver our debt offerings to a new group of loyal high net worth investors with the backing of Centuria.”
The JV expects financing demand from the non-banking financial sector will continue to grow. Currently in Australia the big-four banks alone dominate all lending with over 75% market share. This compares with estimates of less than 40% for all banks in the US.
About Centuria Capital Group:
Centuria Capital Group (CNI) is a leading real estate funds manager with a unique Australasian focus and more than $10 billion of assets under management. We offer a range of investment opportunities including listed and unlisted real estate funds as well as tax-effective investment bonds. Our drive, allied with our in-depth knowledge of these sectors and intimate understanding of our clients, allows us to transform opportunities into meaningful investments.
BASS KICKING GOALS OFF-FIELD: PROUD SUPPORTER OF AJAX FC
AJAX is an amateur AFL club in St Kilda and was established by the Melbourne Jewish community in 1957. It is Australia’s first and only full Jewish club and aims to provide an opportunity for the Jewish youth of Melbourne to participate in AFL and enhance their health and wellbeing through organised sport.
Bass Partner, Yehuda Gottlieb, is delighted to be a playing member of AJAX, along with two of his children. Bass Capital is proud to support the red, white and black – a true community club. Carn the Jackas!
BASS FINANCES $27M BRISBANE DEVELOPMENT
36 apartments will be built over 5 levels at 17-21 Wesley Street in Lutwyche.
Lutwyche is an inner-city suburb of Brisbane, located just 5km from the CBD. One of Brisbane’s oldest suburbs has undergone gentrification at a massive pace over the last few years with new units attracting young couples and families to the area. Supermarkets, gyms, cafes and parks are all nearby, and the train is a five minute walk away. Despite the recent transformation, the character of the suburb remains thanks to the protection of the local Queenslander houses.
BASS MELBOURNE MOVES TO COLLINS STREET
Bass Melbourne has moved into new digs at the top end of Collins Street. Exciting to join Alex Waislitz and the Thorney Investments team in their city hub. Drop in for a coffee, we’re on level 55.
BASS FINANCES BOUTIQUE DEVELOPMENT IN UPPER NORTH SHORE
Bass has provided over $12m to re-finance the residual townhouses at “The Grove”, 18–20 Bent Street, Lindfield.
Lindfield, situated 13km north-west of Sydney’s CBD is safe, clean and very green. It’s a short 10 minute drive to the beautiful Lane Cove National Park, yet still only 25 minutes from the city. Bent Street is located just off the main thoroughfare with cafes, restaurants, gyms, parks and the train station all in easy walking distance.
Bass is seeing increased demand for outer-city suburbs as flexible working arrangements continue. Sales activity in Lindfield has remained consistent over the last 12 months, with prices rebounding to pre-COVID highs.
BASS COMMERCIAL PROPERTY BRIDGE LOAN: A CLIENT TESTIMONIAL
Last week Sydney investor Halina Sher said “I spent my life building a substantial commercial property portfolio in Sydney and Melbourne worth $30M.
First the banks deserted, then my previous private lender took advantage of my situation during COVID, giving me no time to refinance, and threatening to ruin my financial security.
It was incredibly stressful and disappointing to be taken advantage of. In a matter of days Bass Capital provided me with a term sheet for bridging finance and settled on those terms two weeks later, precisely as promised.
Thank you so much Bass, you have delivered for me in a complicated situation, where other financiers were not able."
Meeting the needs of our clients is what matters. The impact of COVID on retail and commercial property landlords has been particularly profound. Looking past the immediate volatility is critical. We were delighted to be able to assist Halina with her extensive investment portfolio and her testimonial speaks to the commitment of the Bass team.
BASS FINANCES $43MILLION SUB-DIVISION IN MELBOURNE’S WEST
Continuing to strongly support our Victorian clients, Bass Capital is delighted to deliver flexible senior and mezzanine finance for the 160 lot Mayflower Estate sub-division in Rockbank.
Located 29km from Melbourne’s CBD, Rockbank is a rapidly growing cosmopolitan, young and vibrant community in an area welcoming thousands of new home owners every year.
BASS FUNDS LUXURY TOWNHOUSES IN NEWCASTLE ON ZERO PRE-SALES
7 Greenslope Street in Newcastle’s beautiful Bar Beach is home to the latest luxury townhouse development financed by Bass with stretch senior debt. Newcastle is Australia’s seventh largest city and will soon grow beyond half a million residents. Our long-standing support for developers outside of the major capital cities continues as the regions enjoy outstanding growth during the pandemic.
BASS CAPITAL'S LATEST PROPERTY CREDIT FUND THREE-TIMES OVER-SUBSCRIBED
Bass recently closed its latest open-ended property fund which focuses on mid-market, first-mortgage property lending. The fund successfully achieved its first close, with $105m raised and $50m earmarked for the second. Whilst the market was predicting large falls in residential property, Bass has grown its loan book significantly and strong growth is predicted this year, with a target return of 8-12% pa for investors in the fund.
BASS FINANCES ICONIC BONDI HOTEL GROUP
We're enjoying being back on Australia's most famous strip of sand playing a home game this week.
Bass is financing mezzanine expansion capital to one of Bondi's leading providers of short stay accommodation in this blue chip location.
With 36 apartments and villas in the rental pool, Bass is enabling one of Bondi’s iconic hotelier’s to refurbish over 30 apartments to prepare for the post-vaccine bounce in tourism later this year.
BASS FINANCES 14 TOWNHOUSES IN ADELAIDE’S LATEST HIP LOCATION
Prospect is an up-and-coming, inner-city suburb approximately five kilometers north of Adelaide’s CBD. Previously overlooked, Prospect now has a cool café and dining scene, quirky shops and a busy events calendar, yet remains surprisingly affordable.
14 townhouses will be built by developer LeHunte Avenue at 221 – 223 Churchill Road, with shops, parks, transport and sought-after schools nearby. This is the second recent development for Bass in Prospect which is undergoing continuing gentrification.
BASS CAPITAL FINANCES $34M PROJECT IN CARNEGIE, VIC
We are pleased to support leading developer Pitard Groups’ latest development with no pre-sale senior debt. Forty-seven beautifully presented residential dwellings and two retail/ commercial units spanning over five levels.
The development is well located only 14kms south east of the Melbourne CBD, within close proximity to a range of local amenities including shops and convenient transport links to the CBD.
Bass Capital is supporting developers seeking to take advantage of opportunities that have emerged with lower levels of supply and but require flexibility on presales requirements.
BASS CAN’T GET ENOUGH OF SOUTH AUSTRALIA
We are pleased to support Starfish Developments with residual stock finance for its extensive master-planned sub-division in Adelaide’s exclusive eastern suburbs.
Hamilton Hill is an estate of over 300 lots, only 10km from the Adelaide CBD between the city and Adelaide’s foothills.
Adelaide is arguably Australia’s most stable and strongest residential market for 2020 and Bass has grown its local team during the COVID crisis, with four local SA real estate investments since the onset of Covid.
South Australia is home to the beautiful d'Arenberg Cube, and now also home to our newly established national agriculture finance business led by Adelaide based Director, Andrew Watson.
LIVERPOOL DEVELOPMENT FUNDED IN THREE WEEKS
In early December, Bass was approached by respected Sydney builder/developer, Carfi Property Services to provide construction finance for its 32 apartment, $15m development in Liverpool, Western Sydney.
Just three weeks later, the financing settled on 24th December.
Liverpool, in Sydney’s south west, is today well on the way to becoming something no one ever imagined even a decade ago – a fashionable street-smart hub of employment, new homes, technology, education, health and entertainment with some of the best transport links in the country.
400 NEW HOMES NOW UNDERWAY THROUGH BASS CAPITAL
Bass Capital is financing the construction and development of over 400 new homes through Australia’s Covid crisis. We are proud to support developers and builders with flexible finance including last week’s funding of a $5.4m boutique subdivision with local western Sydney developer Ankira Projects Pty Ltd. Situated in the established north western Sydney suburb of Riverstone, the site is located approximately 48km from Sydney’s CBD in an area undergoing redevelopment and forming part of the State Government driven Northwest growth precinct, a long-term project fostering population growth, land development, and infrastructure. The development also benefits from close proximity to various transport, educational and recreational facilities.
BASS CAPITAL FINANCES $18M DEVELOPMENT IN HAMPTON, VIC
Bass Capital is pleased to support a leading developer in Melbourne’s South East, Pitard Group, with zero presale finance while Covid inspection restrictions dampen presales. ‘New Hampton Residences’ will comprise of 19 apartments, spanning over three levels and offering purchasers a variety of 2 and 3 bed units complete with balconies and a single level basement carpark. Situated 14km from the Melbourne CBD in the established and sought after suburb of Hampton, the property is in close proximity to various retail amenities, schools and convenient transport links to the CBD. With construction already well underway, the project is expected to experience high demand with the end product targeting owner occupiers and local downsizers.
ACCESS TO FINANCE FOR DEVELOPERS ‘TOUGHEST SINCE GFC’
Residential developers are facing the biggest credit squeeze since the global financial crisis, with construction loans especially hard to come by, according to a new report by law firm Ashurst.
Not only are loans harder to secure from increasingly cautious and risk-averse banks and non-bank lenders, but they have become more expensive and restrictive since the onset of the COVID-19 pandemic.
BASS CAPITAL FINANCES IN BRISBANE’S HISTORIC RIVER-SIDE HEART
Bass Capital supports experienced local developer, SSC Projects with senior construction finance in Bulimba, QLD. The development is located in the well-established inner suburb of Bulimba, situated 4km north of Brisbane’s CBD and within close proximity to various amenities including the popular retail strip of Oxford Street. Flexible, ‘zero pre-sale’ funding from Bass enables the developer to adapt to current market conditions. Commencing construction early enables improved margins as buyers defer purchasing decisions until the development is well underway.
BASS CAPITAL DOUBLES DOWN IN ADELAIDE
Bass Capital is pleased to finance ’82 Johns Road’, a $10.6m residential development in Adelaide. Located in the inner suburb of Prospect (6kms from the CBD), onsite construction works are now well underway. Once complete, the project will comprise 24 two and three storey townhouses. The development is being undertaken by an experienced local developer and established builder. The investment represents Bass’ growing commitment to South Australia.
BASS CAPITAL FINANCES $24M OF TOORAK’S FINEST LUXURY APARTMENTS
Bass supported esteemed local developer Craig Easton with senior term finance. Palais Toorak is a completed luxury development of the highest standard, comprising seven apartments complete with a penthouse and sub-penthouse including private pool, and large private terraces. The highly acclaimed team of Robert Mills Architecture, SJB Interior Design and Paul Bangay Garden Design created these residences which are located in Melbourne’s most coveted residential precinct.
BASS CAPITAL FINANCES BOUTIQUE TOWNHOUSE DEVELOPMENT IN MELBOURNE
Bass Capital funds boutique townhouse development situated in Heidelberg, VIC. The development known as ‘Clyde Court’ benefits from close proximity to retail, commercial, educational and transport amenities, and is only a 20-minute commute to Melbourne’s CBD.
Bass is pleased to continue to support Melbourne’s residential property market in the current economic environment with bespoke construction lending.
SHARING OUR COVID 19 INTELLIGENCE
On Borrowing, Banks and Credit = Tough;
• It seems everyone but the big banks are being hit hard i.e. small business, causal workers, big companies, landlords all struggling ….. but not banks ! This will not change. The reason being that it is widely recognised that government failure to support banks dramatically exacerbated the great depression. If you want to engage in ‘bank bashing’ you will need to get your satisfaction elsewhere
• It’s going to be harder to borrow for many, but easy for some. If you are Homer Simpson, work for a utility on an average salary, you will be peppered with lenders. If you are refinancing a $2m mortgage, prepare for bad news
BASS CAPITAL IS ACTIVELY LENDING
History seems to repeat at every financial and economic crisis. Many lenders which were self-adulating their achievements of how fast they had grown before this crisis, become the first to cease or reduce lending. This occurs because by definition those organisations which grew the most at the height of the boom needed the loosest credit standards to achieve that growth leaving them the most at risk for their investors. Make sure the financier managing your funds is boasting about the quality of their book with meaningful performance statistics, rather than boasting about their rate of growth.
BASS CAPITAL FINANCES $12M BOUTIQUE MIXED-USE DEVELOPMENT IN PRESTON
Bass Capital funds $12m boutique mixed-use development in Preston, VIC. The centrally located development known as ‘THEIA’ is conveniently situated just 9km north of Melbourne, close to local shopping facilities and key amenities, and with direct transport links into the CBD.
Bass is pleased to support Melbourne’s residential property market with bespoke construction lending.
BASS CAPITAL RETURNS OVER 13PC AS PRIVATE LENDING CONTINUES TO GROW
Private financier Bass Capital has returned an average 13.2 per cent on property and construction senior lending over the past four years proving there was depth in the property private lending market with room for double-digit returns.
Backed by over 100 high-net-worth investors, Bass said keeping its funds wholesale, instead of listing publicly, was one way to achieve higher returns, as was searching for better returns from deals that have "fallen through the banking cracks".
BASS CAPITAL FINANCES THREE DEVELOPMENTS IN CANBERRA TOTALLING $9.6M
Bass Capital provides a $9.6M Senior Secured Construction & Residential Mortgage Loan Facility to Exhibit Design and Construction Pty Ltd. Situated in established suburbs in Canberra, the two development sites are within close walking distance to local amenities with good transport links to the CBD which is less than 15km away. The residential portfolio consists of three recently built residential houses in the sought after, affluent districts of Forde and Gungahlin located approximately 20kms from the CBD.
Exhibit Design & Construction Pty Ltd is a local builder/ developer with over 11 years’ experience in residential/ commercial construction and property development.
BASS CAPITAL FINANCES $12M DEVELOPMENT IN WESTERN SYDNEY
Bass Capital funds $12m townhouse development in the western Sydney suburb enclave of Girraween. Key amenities, transport and Girraween High School (ranked in the top 20 schools in NSW) are major draws for young families. Bass supported experienced local developer Minotaur Construction Group with stretch-senior debt to finance the development.
BASS CAPITAL FINANCES $30M 106-LOT RESIDENTIAL SUBDIVISION
Bass Capital funds $30m subdivision in the northern Melbourne suburb of Melton. ‘Little Creek’ is comprised of 106 lots over 12 hectare’s and provides its residents with wide-open spaces, easy access to schools, and quick transport links to the CBD.
Bass Capital is pleased to have settled this loan in just a fortnight, supporting one of Melbourne’s pre-eminent middle market developers and growing our construction finance in Melbourne.
BASS CAPITAL FINANCES AUSTRALIA’S MOST TRUSTED CONSUMER FINANCE BUSINESS
Bass Capital has completed its series 2 senior secured loan warehouse to established lender City Finance Holdings (“CFH”). CFH is a specialty finance company successfully operating for 20 years, providing finance for personal and business loans up to $100,000. CFH is arguably Australia’s most trusted non-bank personal lender growing its loan pool under management to $20m with the support of Bass.
BCB lending, wholly owned by Bass, has been established to service this growing sector in Australia.
BASS CAPITAL FUNDS $9M RESIDENTIAL TOWNHOUSE DEVELOPMENT
Bass Capital funds $9m senior secured loan to JINF Investments for their latest development “The Park Terraces”. Located in Albion Park NSW, the Park Terraces falls within the wider Wollongong Metropolitan area of NSW and will comprise of sixteen (16) townhouses on completion. The two local developers have 50 years combined experience in construction and development.
BASS CAPITAL FINANCES $12M MIXED-USE DEVELOPMENT IN SYDNEY’S NORTHERN BEACHES
Bass Capital funds senior secured loan to Dobroyd Developments’ $12m boutique mixed-used development, taking only 17 days from the loan request to settlement. The Heights consists of luxuriously appointed apartments and retail tenancies designed by Benson McCormack Architects and situated in the harbour-side suburb of Balgowlah Heights.
RESIDUAL STOCK & CONSTRUCTION LOAN FUNDED IN 8 DAYS
In December 2018 Bass Capital financed a bridge loan secured over $50m in property and 3 development sites in Lindfield and Castle Hill, NSW. Highlighting nimble processes and flexible financing terms, Bass completed the transaction in only 8 days.
BASS CAPITAL FINANCES $9M RESIDENTIAL DEVELOPMENT IN WESTERN SYDNEY
With the Western Sydney suburb of Austral continuing to grow, Bass Capital has provided a first mortgage loan to local developer Statewide Civil’s latest $9m residential development.
BASS CAPITAL ENTERS CONSUMER AND SMALL BUSINESS LENDING
Bass Capital has entered the consumer and business lending market with a loan warehouse to established local lender City Finance Holdings (“CFH”). CFH is a speciality finance company successfully operating for 20 years, providing finance for personal and business loans up to $100,000. BCB lending, wholly owned by Bass, has been established to service this growing sector in Australia.
BASS CAPITAL FINANCES $12M RESIDENTIAL SUBDIVISION IN AUSTRALIA
Bass Capital has provided a first mortgage loan to Impressive Property Group’s latest 26 lot residential living development in a growing Western Sydney suburb. Situated 46 kilometres from the CBD, Austral forms part of the City of Liverpool Government Area.
$365,000,000 TERM LOAN FINANCING – FINANCIAL ADVISORY & ACCOUNTING SERVICES
Bass Capital with its US-based partner participated in the refinancing of one of Australia’s leading non-bank financial advisory and accounting services businesses. The transaction includes a A$335 million bullet term loan facility and a A$30 million multi-currency bullet revolving working capital facility. This is the fifth investment in Australia between Bass and PennantPark.
$62,500,000 MEZZANINE FINANCING – CHILDCARE
Bass Capital with its US-based partner has participated in the debt financing package for a leading Australian operator of child care for primary school-aged children. With operations in more than 800 locations throughout Australia, the financing helps underpin the next growth phase. We participated in the 6 year A$62.5m 2nd Lien Term Loan Facility. This is the fourth investment in the Australian partnership between Bass and PennantPark.
BASS CAPITAL FINANCES $26M SUBDIVISION IN ROUSE HILL
Bass Capital has provided a first mortgage loan to Clearstate’s latest 43 lot residential living development in Western Sydney. In one of Sydney’s fastest growing areas it offers quick and easy access to local transport, shops, schools and recreational facilities.
$105M INFRASTRUCTURE CONSUMABLES FINANCING
Bass Capital Partners (‘Bass’) with its US-based partner has participated in the acquisition of a leading provider of consumables to Australian infrastructure contractors. The partly debt-funded transaction included, inter alia, a A$65m Term Loan B facility. Participation in the acquisition’s term loan facility represents the third investment in the Australian partnership between Bass and PennantPark.
BASS CAPITAL FINANCES $73M DEVELOPMENT IN PERTH
ass Capital has provided a first mortgage loan to the award-winning development ‘the Bottleyard’ in Northbridge, adjacent to the Perth CBD. The 125 unit development is successfully built with residual stock being refinanced by Bass Capital. Bass Capital is pleased to support development in the Perth market which is emerging from its recent downturn.
$350M AUSTRALIAN TECHNOLOGY FINANCING
Bass Capital Partners (‘Bass’) with its US-based partner has participated in the financing of LEAP Legal Software Pty Ltd’s recent acquisition of InfoTrack Group Pty Limited. The transaction included a A$350m senior secured facility and merges two leading cloud-based Software-as-a-Service (‘SaaS’) providers to create a preeminent Australian technology company. Bass is pleased to support the transaction and further develop our Australian partnership with PennantPark.
$460M HEALTHCARE FINANCING
Bass Capital with its US partner has participated in a $460m senior loan financing in the Australian healthcare sector. Bass is pleased to participate in this substantial loan syndicate and grow our partnership with US-based PennantPark.
BASS CAPITAL FUNDS ANOTHER $18M DEVELOPMENT
Bass is the private fund of Nick Goh and Giles Borten and has quickly settle the financing of another development on flexible terms to the borrower. ‘Birchgrove’ is a 34 townhouse/villa development in Dapto being developed by Harrison Investment Holdings.
BASS CAPITAL FINANCES $24M DEVELOPMENT IN WOLLONGONG
Bass Capital the private fund of Nick Goh and Giles Borten is sole lender to a 44 villa, 97 car space development ‘Carrington Park’ being developed by local property developer Derwent Property. Bass is proud to support regional development being overlooked by the major banks.
BASS CAPITAL FINANCES $8M BOUTIQUE DEVELOPMENT IN SPRINGWOOD
Bass Capital, the private fund of Nick Goh and Giles Borten, is sole lender to the beautiful high-end development ‘The Valley Springwood’. Bass Capital is proud to support the young, innovative developers at Glenstone Constructions in bringing a unique and sought after product to the Blue Mountains.
SENIOR LENDER $12M PROPERTY DEVELOPMENT
Bass Finance No 4 PL provides senior debt to $12m townhouse development ‘Carrington Park’ in Wollongong.
BASS CAPITAL CLIENTS RETURN 18.50%pa FROM AAA RATED BONDS
Bass Capital purchased Emerald II Class A notes Mortgage Bonds in a wholesale trade, generating a substantial excess return for investors.