Fannie Mae priced a $1.49 billion credit risk-sharing transaction under its Connecticut Avenue Series program.
The CAS Series 2018-C01 is scheduled to settle Feb. 14.
The reference pool for the series consists of more than 186,000 single-family mortgage loans with an aggregate principal outstanding unpaid balance of approximately $44.9 billion. The loans have original loan-to-value ratios between 60% and 80% and were acquired from May 2017 through August 2017. They are fixed-rate, generally 30-year term, fully amortizing mortgages.
Fannie Mae will retain a portion of the 1M-1, 1M-2 and 1B-1 tranches to align its interests with investors throughout the life of the deal. Fannie Mae will retain the full 1B-2 and 1A-H tranches.
Merrill Lynch Pierce Fenner & Smith Inc. is the lead structuring manager and joint book runner, and Wells Fargo Securities LLC is the co-lead manager and joint book runner. Co-managers are Barclays Capital Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Nomura Securities International. Selling group members are Mischler Financial Group and Samuel A. Ramirez & Co. Inc.
