WASHINGTON, DC—Fannie Mae has priced itsfifth Multifamily DUS REMIC for the year, totaling$1.24 billion. The deal was based on both floatingrate and fixed-rate paper, due to investor demand for both types ofsecurities.

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"There was huge demand for short floaters this month," accordingto Josh Seiff, Fannie Mae Vice President ofMultifamily Capital Markets. "We created a floater off of a blockof seasoned Fixed + 1 securities to meet some of that demand andalso issued a 5-year fixed-rate bond."

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The deal was several times over subscribed, he added.

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This transaction follows a seniors-only floating rate K Deal that Freddie Maclaunched earlier this week.

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The K Certificates consist exclusively of LIBOR-based, floatingrate multifamily mortgages with five-, seven-, and ten-year termson seniors housing properties.

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It was Freddie Mac's second K Certificate offering backedexclusively by seniors housing collateral—but its firstfloating-rate seniors deal.

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In general, and across all asset types, investors are becomingmore interest in floating-rate paper and loans as the FederalReserve prepares to raise rates.

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