RESIDENTIAL MORTGAGE <RMI> SELLS CMOS
Residential Mortgage Acceptance Inc, a
unit of Residential Mortgage Investments Inc, is offering 100
mln dlrs of collateralized mortgage obligations, said sole
manager Merrill Lynch Capital Markets.
    Average lives for two floating-rate classes are 2.36 and
11.27 years for maturities of 2011 and 2016. Rates will be
reset at three-month LIBOR plus 35 basis points for the shorter
class and plus 60 basis points for the longer one.
    An inverse floater tranche has an average life of 11.27
years and matures 2016. Its rate will be reset by subtracting
the product of 1.8 times LIBOR from 21.975.
    The Residential CMO package also has three fixed-rate
tranches, Merrill Lynch said.
    Yields on these securities, to be fully paid by dates from
2011 to 2017, range from 7.21 to 8.70 pct. Spreads over
comparable Treasury securities run from 90 to 115 basis points.
Average lives are 2.36 to 23.28 years.
    The issue is rated a top-flight AAA by Standard and Poor's
Corp.
REUTER...^M
