logo
Share SHARE
FONT-SIZE Plus   Neg

Bloomberg: Fannie Mae To Sell $2 Bln Of CMBS

Mortgage finance giant Fannie Mae (FNMA: Quote) plans to sell $2 billion of commercial mortgage bonds or CMBS that were issued before the 2008 financial crisis, Bloomberg reported Tuesday, citing people familiar with the offering.

The sale is reportedly part of the company's efforts to reduce holdings of illiquid assets, even as demand for bonds backed by loans on commercial properties is surging.

Fannie Mae, which has returned to profitability after being taken over by U.S. regulators in 2008, is said to be offering securities linked to apartment complexes that were issued in 2006 and 2007. The company may reportedly follow up with similar offerings in the next several months.

In early May, Fannie Mae reported a sharp increase in first-quarter profit, due mainly to some hefty tax benefits and higher revenues stemming from a recovery in the housing market. The mortgage guarantor said it continues to benefit from better home prices and a decrease in loan delinquencies.

Fannie Mae and its sister company Freddie Mac (FMCC) went bankrupt after the 2008 financial crisis and had to rely on federal aid totaling about $190 billion. Both companies have since recovered on the back of higher home prices and lower delinquencies.

The Federal Housing Finance Agency or FHFA, which regulates Fannie Mae and Freddie Mac, has asked the two companies to sell off at least 5 percent of illiquid asset holdings this year.

FNMA closed Tuesday's trading at $1.71, up $0.17 or 11.04 percent on a volume of 110.52 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Mixed signal solutions provider NXP Semiconductors N.V. (NXPI) agreed Sunday to acquire embedded processing solutions provider Freescale Semiconductor Ltd (FSL) in a cash an stock deal valued at about $16.7 billion, including Freescale's net debt of $4.9 billion. Get ahead of the market. For in-depth... Mitel Networks Corp. (MITL, MNW.TO) and Mavenir Systems (MVNR) announced a merger agreement in which Mitel will acquire all of the outstanding shares of Mavenir common stock in a cash and stock deal valued at approximately $560 million. Get ahead of the market. For in-depth analysis not... ISIS has renewed its death threat to employees of micro-blogging site Twitter, Inc., particularly its co-founder Jack Dorsey. The threats are in retaliation for Twitter blocking accounts which are affiliated to or support the Islamic State. Twitter has a policy of barring users from posting threats or using the service for furthering of illegal activities.
comments powered by Disqus
Follow RTT