Fannie Mae priced its eighth Multifamily DUS REMIC for the year, totaling $1.15 billion under its Fannie Mae Guaranteed Multifamily Structures program.

Separately, Freddie Mac priced a new $167 million offering of Structured Pass-Through Certificates, or K Certificates, in which two of the tranches were backed by fixed-rate loans. Freddie Mac expects to settle on or about September 27, 2016.

In the case of Fannie Mae's offering, the 10-year fixed-rate tranches were in such demand they were oversubscribed, Josh Seiff, Fannie Mae's Vice President of Capital Markets and Trading, told GlobeSt.com.

“The market has been flooded with floating rate paper lately, in particular Freddie Mac has been generating a lot of it,” he said. (Indeed, this month Freddie Mac also priced a new $1.1 billion offering of Structured Pass-Through Certificates backed by floating-rate multifamily mortgages with 7-year terms. These K Certificates are expected to settle on or about September 22, 2016.) Fannie Mae has been generating floating-rate paper as well, but not to the same extent as Freddie.

The upshot was a rush to the fixed-rate securities by investors, Seiff said.

“These investors hadn't seen a big-block sized ten-year, fixed-rate deal since July. They were more than ready for one.”

More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

Freddie Mac

WASHINGTON, DC–There is a certain subset of institutional investor — an insurance company or asset manager for an insurance company for example — that has a very short list of the type of paper in which it can invest. Ten-year, structured fixed-rate mortgage investments is on that short list.

Since July these investors have found the pickings to be slim to non existent. There were no GSE structured fixed-rate multifamily offerings that came to market during this time period; in addition CMBS issuance in this category was sparse.

This month, though, these investors — as well as other institutions that have gotten tired of the floating-rate paper that has been flooding the market lately — have been able to feast.

Both of the GSEs recently began marketing separate fixed-rate structured offerings.

Fannie Mae priced its eighth Multifamily DUS REMIC for the year, totaling $1.15 billion under its Fannie Mae Guaranteed Multifamily Structures program.

Separately, Freddie Mac priced a new $167 million offering of Structured Pass-Through Certificates, or K Certificates, in which two of the tranches were backed by fixed-rate loans. Freddie Mac expects to settle on or about September 27, 2016.

In the case of Fannie Mae's offering, the 10-year fixed-rate tranches were in such demand they were oversubscribed, Josh Seiff, Fannie Mae's Vice President of Capital Markets and Trading, told GlobeSt.com.

“The market has been flooded with floating rate paper lately, in particular Freddie Mac has been generating a lot of it,” he said. (Indeed, this month Freddie Mac also priced a new $1.1 billion offering of Structured Pass-Through Certificates backed by floating-rate multifamily mortgages with 7-year terms. These K Certificates are expected to settle on or about September 22, 2016.) Fannie Mae has been generating floating-rate paper as well, but not to the same extent as Freddie.

The upshot was a rush to the fixed-rate securities by investors, Seiff said.

“These investors hadn't seen a big-block sized ten-year, fixed-rate deal since July. They were more than ready for one.”

More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.