NEW YORK, Jan 13 (IFR) - Fannie Mae has begun
marketing its second risk-transfer mortgage-bond, the USD750m
Connecticut Avenue Securities (CAS) 2014-C01, investors said on
The deal is expected to price on either Tuesday or Wednesday
via lead placement agents Bank of America Merrill Lynch and
Barclays. Bank of America is the structuring lead.
The deal includes two mezzanine tranches. Price whisper talk
on the M1 (mezzanine) tranche has been set at one-month Libor
plus high-100s basis points, and one-month Libor plus mid-400s
basis points for the M2 tranche, the investors said.
Each tranche is expected to be USD375m in size. The M1
tranche is rated Baa2/BBB- by Moody's and Fitch respectively.
"It's premature to discuss any further details, but we look
forward to reducing our risk and encouraging private capital to
return to the market through additional transactions in 2014,"
said Callie Dosberg, a Fannie Mae spokeswoman.
Fannie priced its inaugural credit risk sharing transaction,
2013-C01, in mid-October, and has been expected to build on that
success for some time.
The USD675m deal from October shared the risk on a large and
diverse reference pool of more than 112,000 single family
mortgage loans with an outstanding unpaid principal balance of