NEW YORK, April 28 (IFR) - Fannie Mae plans to launch its
second risk-sharing MBS of 2014 - and its third one overall - in
mid-May, sources told IFR on Monday.
Government sponsored enterprises Fannie Mae and Freddie Mac
have sold a total of four risk-sharing MBS out of programs which
were set up last year.
The new deal from Fannie Mae, CAS 2014-C02, will introduce
loans with up to 80% LTV, a higher leverage than collateral
tapped so far under the program.
Investors have heavily supported issuance of the
risk-sharing deals from both Fannie and Freddie Mac so far.
Spreads on trades issued off Fannie's CAS program and
Freddie Mac's STACR program have tightened roughly 100bp since
they were issued.
(Reporting by Joy Wiltermuth; Editing by Shankar Ramakrishnan)