Breaking News
FONT-SIZE Plus   Neg
Share SHARE

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.

Register
To receive FREE breaking news email alerts for FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Before heading to New York for meetings with other world leaders at the United Nations, President Barack Obama delivered a statement on Tuesday regarding U.S. airstrikes in Syria. Obama highlighted the fact that the U.S. was joined in the attack by Saudi Arabia, the United Arab Emirates, Jordan, Bahrain, and Qatar. After recovering from an initial move to the downside, stocks have shown a lack of direction over the course of the trading day on Tuesday. The choppy trading comes on the heels of the notable pullback seen in the previous session. With lawmakers failing to address corporate tax reform before adjourning for the campaign season, the Treasury Department announced Monday that it is taking targeted action to reduce the tax benefits of corporate tax inversions.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.