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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.”
