Fannie Mae selling new two-year notes
Fannie Mae is bringing new, two-year benchmark notes to market this week. The issue size has yet to be announced, but the notes mature Aug. 9, 2013. The transaction is being lead by Barclays Capital (BCS), Credit Suisse (CS) and UBS Securities (UBS). Reuters reported the notes are expected to yield 15.5 basis points higher than comparable Treasurys. Co-managers include Blaylock Robert Van, BNP Paribas Securities Corp., Deutsche Bank Securities (DB), FTN Financial Capital Markets, Goldman Sachs (GS), and Williams Capital Group. Fannie Mae and Freddie Mac hav been in conservatorship since the fall of 2008. Today, both companies remain a drain on federal resources, according to a recent report from the Federal Housing Finance Agency. In its third annual letter to Congress, the regulator said stronger loan underwriting standards helped the companies reduce their losses in 2010 to $28 billion from $93.6 billion a year earlier. Write to Kerri Panchuk.