Fannie Mae Announces 3-Year Benchmark Note
April 01 2009 - 11:52AM
Dow Jones News
Fannie Mae (FNM) announced a new three-year benchmark note
offering on Wednesday.
Fannie has yet to announce the size of the deal.
This issue follows Freddie Mac's (FRE) sale of two benchmark
notes last week, with maturities of two and 10 years. The sizes of
these offerings were kept at a more normal level of about $3
billion on the 10-year, and $5 billion on the two-year. It offered
the market a respite from the huge deals that had dominated the
first few issues of this year.
For instance, Fannie's previous benchmark note sold in March was
a $9 billion, five-year note.
It's not clear if Fannie will continue to go for large issue
sizes, or if like Freddie, it would tone them down this time.
Fannie's previous three-year issue was in January of this year,
when it sold $6 billion of these securities at 83 basis points over
comparable Treasury yields.
Currently, this bond trades at 56.5 basis points over comparable
Treasury yields.
-By Prabha Natarajan, Dow Jones Newswires, 201-938-5071;
prabha.natarajan@dowjones.com