Fannie Adjusts Series O Dividend Rate

Fannie Mae has announced a dividend rate adjustment for its series O variable-rate noncumulative preferred stock.The new rate, 7.000%, will be in effect from Sept. 30 to Dec. 31. The dividend will continue to accrue at an annual rate of 7.000% until it is determined that the sum of the 10-year Constant Maturity Treasury rate plus 2.375% is greater than 7.000% on the applicable quarterly determination date, the government-sponsored enterprise said. (The 10-year CMT rate is the one-week average yield on 10-year U.S. Treasury securities at "constant maturity," as estimated from the Treasury Department's weekly yield curve.) Fannie Mae also announced an initial dividend rate of 5.9481% for its series P variable-rate noncumulative preferred stock (CUSIP: 313586786), which will be in effect from Sept. 28 to Dec. 31. Fannie Mae can be found online at http://www.fanniemae.com.