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 GSE told ASR sister publication National Mortgage News.
The deal included 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 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.
