Fannie Mae Faces Higher Costs in Risk-Sharing-Debt Sale
Bloomberg - July 17, 2014 - July 17, 2014
Bloomberg
July 17, 2014, By Jody Shen
Bond investors are seeking to be paid more to potentially bear some of the losses on mortgages guaranteed by Fannie Mae in the biggest sale of a type of risk-sharing debt it began offering last year.
The government-backed mortgage giant may pay a floating rate of 3 percentage points more than a borrowing benchmark on $945 million of unrated notes in the $2.1 billion offering, the high end of an earlier range, according to a person with knowledge of the sale. The Washington-based company sold $644.5 million of similar securities in a May deal at a spread of 2.6 percentage points.
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