Fannie Mae fourth risk-sharing bond prices wide

Plans next deal in November

Fannie announced that it priced its fourth, and largest, credit risk sharing transaction under its Connecticut Avenue Securities platform.

Pricing for the 1M-1 tranche was one-month LIBOR plus a spread of 120 basis points. Pricing for the 1M-2 tranche was one month LIBOR plus a spread of 300 basis points. 

Pricing for the 2M-1 tranche was one-month LIBOR plus a spread of 120 basis points. Pricing for the 2M-2 tranche was one month LIBOR plus a spread of 290 basis points. 

This is wide compared to the third transaction.

In that deal, pricing for the 1M-1 tranche was one-month LIBOR plus a spread of 95 basis points. Pricing for the 1M-2 tranche was one month LIBOR plus a spread of 260 basis points. 

Pricing for the 2M-1 tranche was one-month LIBOR plus a spread of 95 basis points. Pricing for the 2M-2 tranche was one month LIBOR plus a spread of 260 basis points.

The $2.05 billion note offering priced today and is scheduled to settle on July 25. 

This deal is consistent with prior transactions, and includes reference loans with original loan-to-value ratios of up to 97%, the government-sponsored enterprise said in a statement.

“As planned, we have been coming to market with new issuance on a regular, quarterly basis,” said Laurel Davis, vice president for credit risk transfer at Fannie Mae.  “We plan to come to market again next quarter, likely in November.”

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