Fannie Mae on Thursday priced a $1.4 billion multifamily DUS REMIC with a large five-year tranche that drew several new investors, a capital markets executive at the agency told this publication.
The deal included some collateral that was close to five years seasoned in addition to the new origination 10-year collateral it typically includes in its transactions.
“That allowed us to offer a large size tranche for a five-year bond,” said Kimberly Johnson, vice president of multifamily capital markets, noting that this was done in response to what has been strong demand for relatively shorter tranches.
The five-year tranche, ASQ2, had about a $567.5 million original face value and a 5.24-year weighted average life.
“There were eight new buyers of GEMS and almost all of those were buyers of the shorter-term paper, the ASQ2 tranche,” Johnson said.
She said typically Fannie’s guaranteed multifamily structures deals have been on average drawing about 20-30 investors per deal. This one drew 35 investors.
