Fannie Mae's $7 billion issue, the first from a US housing agency since the government bailout on September 7, received a resounding welcome from the market, which piled into the deal with enthusiasm.
The book was well oversubscribed, at $9.4 billion, driving the price to 70bp over US Treasuries, a level equal to 26bp below mid-swaps. Freddie Mac's issue before the implementation of the Treasury plan for the GSEs, also a two-year trade, was priced at 6bp below mid-swaps. The Fannie trade tightene
The week on Risk.net, July 7-13, 2018Receive this by email