Fannie Mae is in the midst of preparing its first mortgage-backed securities sale in a deal that will allow the GSE to share the default risk with bondholders, Bloomberg says. The publication has more:
Fannie Mae officials are visiting investors across the country, with stops in Boston and Cincinnati this week, as it attempts to sell $675 million of the debt at lower yields than Freddie Mac got in its $500 million offering in July, said three people with knowledge of the sale who asked not to be named because details are private. Under Fannie Mae’s terms, bondholders won’t suffer losses until delinquencies are higher.
