In an unusual move, Fannie Mae has obtained credit ratings for eight previously unrated tranches of five Connecticut Avenue Securities transactions (CAS) issued between 2012, when the program was launched, and 2015.

CAS are a type of credit linked note that Fannie Mae uses to offload the risk of residential mortgages it insures. The notes are unsecured general obligations, but their performance is linked to that of a pool of securitized mortgages. If too many mortgages default, CAS investors could forego interest or principal.

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