logo
Share SHARE
FONT-SIZE Plus   Neg

Bloomberg: Fannie Mae To Sell $2 Bln Of CMBS

Mortgage finance giant Fannie Mae (FNMA) 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
Shares of Airbus Group SE declined around 2 percent in the early morning trading in Paris after the aerospace and defense major reported a loss in its fourth quarter, compared to a profit last year, mainly due to a hefty charge related to the A400M programme. Revenues, however, increased from last year. Further, the company lifted its dividend, and said it expects higher adjusted ea Federal Network Agency (Bundesnetzagentur) has asked parents who bought the popular My Friend Cayla doll to destroy the toy or disable its wireless connection. The Bundesnetzagentur has banned the unauthorized wireless transmitting equipment in a children's toy and has already removed the product... Saudi Arabia is reportedly considering to list its state-run oil behemoth Saudi Aramco in New York Stock Exchange. According to a WSJ report, citing people familiar with the matter, Aramco prefers to float its shares on the NYSE, or in London or Toronto after discussion to list on an Asian stock exchange...
comments powered by Disqus
Follow RTT