WASHINGTON, DC-Fannie Mae’s ninth multifamily DUS REMIC for the year clocked in at $1.03 billion, with the GSE pricing the REMIC earlier this month.
The deal was structured a little differently this time–namely, it was divided into three groups reflecting three different sets of collateral. There were the usual 10-year collateral bonds, but also added into the mix was seven-year and five-year collateral. The latter two were created to answer investor demand, especially those investors growing skittish over the macroeconomic and fiscal that had grown skittish over the last two weeks.
All in all, “there was good participation across the curve,” Josh Seiff, Fannie Mae Director of Multifamily Capital Markets, tells GlobeSt.com.
It was the first time in months that Fannie Mae had created a seven-year group, he says. Investors have been stepping up their participation in the shorter-maturity collateral for various reasons lately, including economic uncertainty. “The idea was to appeal to as many different investor constituencies,” he says. “When uncertainty arises, investors tend to seek out of shorter maturities.”
There were some new investors taking part in the offering, Seiff says, but they were from the usual sources: banks, money managers, funds and insurance companies.
The structure details for the multi-tranche offering are included in the table.