WASHINGTON, DC—Fannie Mae has priced its fifth Multifamily DUS REMIC for the year, totaling $1.24 billion. The deal was based on both floating rate and fixed-rate paper, due to investor demand for both types of securities.
"There was huge demand for short floaters this month," according to Josh Seiff, Fannie Mae Vice President of Multifamily Capital Markets. "We created a floater off of a block of seasoned Fixed + 1 securities to meet some of that demand and also issued a 5-year fixed-rate bond."
The deal was several times over subscribed, he added.
This transaction follows a seniors-only floating rate K Deal that Freddie Mac launched earlier this week.
The K Certificates consist exclusively of LIBOR-based, floating rate multifamily mortgages with five-, seven-, and ten-year terms on seniors housing properties.
It was Freddie Mac's second K Certificate offering backed exclusively by seniors housing collateral—but its first floating-rate seniors deal.
In general, and across all asset types, investors are becoming more interest in floating-rate paper and loans as the Federal Reserve prepares to raise rates.
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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.
