SOFR - Fannie Mae Announces $2.0B Secured Overnight Financing Rate (SOFR) Transaction, Encouraging Market Participation
Third SOFR Offering Grows Investor Base
WASHINGTON, DC – Today, Fannie Mae announced and priced its third Secured Overnight Financing Rate (SOFR) offering, an 18-month $2.0 billion issuance.
"With our first SOFR security maturing at the end of this month, it was an opportunity to come to market. Among our three offerings, we are pleased that with each concurrent deal, we have seen increased demand. We continue to see new investors in our deals, as well as significant interest in the market from both the issuer and investor sides. These are great gauges of market progress," said Nadine Bates, Senior Vice President and Treasurer, Fannie Mae.
"This third offering, marking Fannie Mae's seventh SOFR security, increases the liquidity of the SOFR curve. The more maturity points there are, the better equipped the market will be to adopt the new rate," said Bates. "It is important to maintain momentum in the SOFR market, and Fannie Mae is proud to demonstrate commitment to the Alternative Reference Rate Committee's (ARRC) efforts to develop LIBOR-alternatives."
Over $40 billion of SOFR-linked securities have been issued in the marketplace since Fannie Mae’s inaugural offering last July.
|18-month||3135G0V26||$2.0B||SOFR + 6 bps|
Numbers may not foot due to rounding
*Indicative as of January 28, 2019
Barclays Capital Inc., Citigroup Global Markets Inc., and Nomura Securities International, Inc. are the lead managers on this transaction. CastleOak Securities and Mischler Financial Group are selling group members.
Fannie Mae Continues to Lead the Secured Overnight Financing Rate (SOFR) Market with Second Issuance of $5 Billion
Fannie Mae Pioneers Market's First-Ever Secured Overnight Financing Rate (SOFR) Securities
You should not deal in securities unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in light of your circumstances and financial position. If you are in any doubt you should consult an appropriately qualified financial advisor.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/FannieMae.