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.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.