GSEs Announce Their 2017 Credit Risk Transfer Calendars

Fannie Mae Freddie Mac BHThe end of 2016 is drawing near, and with it comes the preparation for the new year. For Freddie Mac and Fannie Mae, that means announcing the 2017 calendars for the Structured Agency Credit Risk offerings and the Connecticut Avenue Securities offerings, respectively.

“The issuance calendar is another way we provide investors transparency into our flagship credit risk transfer program,” said Michael Reynolds, VP of Credit Risk Transfer for Freddie Mac. “We will continue to focus on on-the-run collateral as we did in 2016. We’re committed to supporting the liquidity of STACR, and plan to continue to enhance the program to meet the needs of the market and investors worldwide.”

Freddie Mac has announced plans to offer seven STACR transactions throughout the year beginning in February with the STACR 2017 DNA1 deal. Through STACR, the GSE says they hope to transfers a significant portion of its mortgage credit risk on certain groups of loans to private investors.

For the CAS offerings, Fannie Mae plans to issue six tentatively beginning in early to mid-January.

“We continue to look for ways to increase transparency and improve the flow of information to investors in our CAS program. The publication of our 2017 issuance calendar as well as recent enhancements in our credit risk sharing resources, including Fannie Mae’s Data Dynamics™ loan performance analysis tool, are designed to provide investors greater access to information that enables them to make investment decisions,” said Laurel Davis, VP of Credit Risk Transfer for Fannie Mae. “In 2017, we expect to continue to be a benchmark issuer in the credit securities market. As we have demonstrated throughout the program, our issuance volumes and utilization of available windows continue to be dependent on market conditions.”

Fannie Mae says that it is committed to building a strong market for credit risk sharing as it enters the fourth year of the CAS program.

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