Initial demand shifted toward the long bond in the pricing of Fannie Mae’s latest multifamily delegated underwriting and servicing REMIC deal, possibly due to QE3.
The deal otherwise “was almost a carbon copy” of a
There continued to be “demand across the curve” for the latest $1.1 billion multifamily DUS REMIC and “people filled into the book quick,” but this time “the long bond filled up first,” she said.
“It was a little bit of a change in direction, so it was interesting to see,” said Johnson, of the latest deal of this type, 2012-M13.
“I think a lot of it does have to do with the Fed,” said Johnson, referring to the Federal Reserve’s recent initiation of a third round of quantitative easing through purchases of long-term single-family mortgage-backed securities.
Using two groups of collateral in this manner is relatively new for Fannie Mae’s multifamily REMICs and Johnson said that so far she considers reaction “very positive” to both collateral groups.
When asked if this recent experience with this type of deal might influence future transactions, Johnson said Fannie has “a lot of good options” and will “choose spots when it comes time for issuance.”
