Bloomberg Law
March 13, 2023, 4:47 PM

Fannie Mae Delays Risky Mortgage Bond Sale Amid Market Unrest

Charles Williams
Charles Williams
Bloomberg News
Carmen Arroyo

Government-backed home loan company Fannie Mae has postponed the sale of more than $500 million of mortgage-linked bonds as the market absorbs the collapse of California’s Silicon Valley Bank, according to people with knowledge of the matter.

Fannie Mae alerted investors Monday morning that the deal, a $542 million credit risk transfer security, would be delayed and cited market conditions, said the people who asked not to be identified as the details are private. The securities are riskier than regular Fannie Mae mortgage bonds, because they are among the first to take losses when homeowners fail to make payments. ...