Key Developments For Federal National Mortgage Association
Federal National Mortgage Association (FNM) (NYSE Arca)
Fannie Mae To Sell $3 Billion In Bills On Wednesday-Reuters
Reuters reported that Fannie Mae said it plans to sell $2.0 billion of three month benchmark bills due February 24, 2010, and $1.0 billion of six month bills due May 26, 2010, on Wednesday in a Dutch auction.
Berkshire Hathaway, Inc. Joins The Goldman Sachs Group, Inc.'s Bid For Fannie Mae's Tax Credits-Reuters
Reuters reported that Berkshire Hathaway, Inc. has joined The Goldman Sachs Group, Inc. in a bid to buy $3 billion in tax credits from Fannie Mae. The Treasury Department, which controls Fannie Mae and Freddie Mac after pouring $100 million into the housing-finance giants, may block the sale on the grounds that it wouldn't benefit taxpayers. The credits are worth little to Fannie Mae, which also records losses each quarter as their value declines.
Fannie Mae Announces Offering Of New Issue Five Year Benchmark Notes
Fannie Mae announced that the offering of five year benchmark notes, the pricing date is October 23, 2009, settlement date is October 26 and the maturity date is November 20, 2014. The payment dates are each November 20 and May 2h, beginning November 20, 2009. Barclays Capital Inc., Deutsche Bank Securities Inc., and J.P. Morgan & Co. are the joint lead managers. The co-managers include Banc of America Securities, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Jefferies Group Inc., and Williams Capital Group LP.
Fannie Mae Sells $3 Billion Bills At Higher Rates-Reuters
Reuters reported that Fannie Mae sold $3 billion of bills at higher interest rates compared to those of the same maturities sold last week. The Company sold $1 billion of three-month benchmark bills due January 20, 2010 at a stop-out rate, or lowest accepted rate, of 0.094% and $2 billion of six-month bills due April 21, 2010 at a 0.190% stop-out rate. The three-month bills were priced at 99.976 with a money market yield of 0.094%. The six-month bills were priced at 99.904 with a money market yield of 0.190%. Settlement is October 21-22.
Freddie Mac and Fannie Mae Price Targets Cut To Zero-AP
Associated Press reported that the shares of mortgage finance companies Fannie Mae and Freddie Mac tumbled on October 19, 2009, after a Keefe, Bruyette & Woods analyst downgraded the two to the firm's lowest rating, saying their common and preferred shares would be 'worthless' given the nearly $100 billion they will continue to owe the government, even if recapitalized. The two government-sponsored enterprises, or GSEs, buy up mortgages from banks. In order for them to survive, they need to be recapitalized, said analyst Bose George in a note to investors. But he expects the government will continue to run the companies, and that 10 years from now, both will still owe the government more than the value of their common and preferred equity. KBW downgraded Fannie and Freddie to 'Underperform', its lowest rating, from 'Market Perform' and cut price targets on both stocks to zero from $1.
