We issue debt securities in domestic and global capital markets to support our housing finance mission and fund our business activities.
Investor ecosystem and distribution Institutional investors in Fannie Mae debt include fund managers, commercial banks, pension funds, insurance companies, central banks, corporations, state and local governments, and other municipal authorities. Distribution occurs through a select group of securities dealers and dealer banks.
How Fannie Mae typically issues debt - At a glance
Issuance Methods:
Posted offerings (e.g., for Discount Notes and Floating-Rate Notes)
Reverse inquiry (e.g., for Fixed Rate Callables)
Scheduled offerings (e.g., for Benchmark Notes®)
Scheduled auctions (e.g., for Benchmark Bills®)
Additional Information:
Settlement & clearing: Settlement is available via the Federal Reserve Book Entry System and through Euroclear and Clearstream (for applicable securities).
Typically provide additional spread over comparable U.S. Treasuries.
Provide more predictable interest payments.
Range of maturities that can be used to meet different investment objectives.
May include call option(s) which can provide further additional yield above comparable maturity bullet securities as compensation.
Key features/structures
Fixed Rate Callables:
Principal may be redeemed prior to the stated final maturity date based on the option schedule.
Interest rate is fixed at issuance*.
Interest payment frequency is typically semi-annual but can be a different frequency if desired.
Final maturities generally range from six months to ten years.
Lockout periods generally range from one month to three years.
Call option frequency may be European (one-time), Bermudan (periodic), or American (continuous).
Settlement date is flexible between one to thirty days.
* Interest rate on step rate callables moves up or down based on a predetermined schedule.
Fixed Rate Non-Callables:
Principal is redeemed only at the stated final maturity date.
Interest rate is fixed at issuance and does not change.
Interest payment frequency is typically semi-annual but can be another frequency.
Maturities generally range from one year to ten years.
Settlement date may be between one and thirty days.
May be STRIP eligible.
Issuance & trading mechanics
Fixed Rate Callables:
Reverse inquiries are accepted most business days.
Investors may purchase callables via approved dealers.
Pricing depends on the structure and market conditions.
Exercise of call options is largely dependent on interest rate conditions. Call notices are published on Fedwire Call Notices and in our Recently Called Securities reports provided below under related available reports.
Fixed Rate Non-Callables:
Benchmark Notes:
Issued or re-opened via dealer syndicate or auction.
Benchmark Notes may be issued on pre-determined dates shown in the issuance calendar.
Other Fixed Rate Bullets:
Investors may submit a reverse inquiry via approved dealers.