Fannie Mae’s latest offering of Connecticut Avenue Securities, its last of the year, is the first to offer exposure to actual losses on residential mortgages that it insures.

CAS offerings are senior unsecured obligations of Fannie Mae but are subject to the credit risk of a pool of loans held in various mortgage backed securities insured by the government sponsored enterprise – in this case a $45.04 billion pool. The previous eight deals all calculated investor losses after loans became 180 days delinquent, based on an estimate of losses they might eventually incur.

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