Fannie MaeFederal National Mortgage Association (OTCBB:FNMA) funds for less interest
Dallas, Texas 09/20/2013 (Financialstrend) – On September 19, Federal National Mortgage Association (OTCBB:FNMA) more popularly known as Fannie Mae announced tentative schedule for sale of new benchmark notes for rest of 2013. The dates of probable sale are September 26, October 2, November 6, November 26 and December 11. The company has not disclosed the pricing or the settlement dates and terms yet and investors would have to wait for the respective announcement dates to know more about each sale offer.
Fannie Mae is the largest lender for housing in North America and has a substantive investment form the US government in its shares. In order to raise funds for its lending operations, the company releases secured notes from time to time. Over the past week the company has raised over $500 million from these exercises. In the first installment, the company sold $250 million of bills which are redeemable on March 11, 2014 and has offered 0.065% interest to the investors. In the second installment, On September 19, the company was able to sell $250 million bills by offering lesser interest of 0.059% than its prior week offering. These notes will be settled on September 18, 2013.
In August the company had announced its second quarter numbers which did not meet analyst expectations. Post the announcement the share price of the company dropped by over 20% to bottom out at $1.23 per share. Since then, the share has been struggling to regain its lost value. At close of business on September 19, the company shares were trading at $1.25 per share. It had appreciated by 6.84% with respect to its prior day closing price. This was in spite of financial market taking a short breather on the browsers yesterday post the Fed announcement induced bear run on Wednesday. While the financial index was down by 0.46%, the Dow Jones was down by a quarter percentage point.