WASHINGTON, DC-On Tuesday with little fanfare or formality Fannie Mae dropped a lollapalooza on the market: it released a list of commercial-mortgage bonds issued before the financial market crisis that is plans to sell on Thursday.
The holdings are significant – some $2.2 billion – making it not only the largest transfer of risk in a year, but as Deutsche Bank noted in a client note, also the first widely distributed list to include multifamily bonds.
Fannie Mae is taking this step for a simple reason, Kimberly Johnson, Fannie Mae Senior Vice President of Multifamily Capital Markets, tells GlobeSt.com – it wants to make sure it meets its goals under the conservatorship scorecard. "We are working under the direction of the Federal Housing Finance Agency," she says. (Earlier this year the FHFA directed Fannie Mae and Freddie Mac to sell off at least 5% of their illiquid holdings in 2013.)
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
