Fannie Mae has announced its 2020 Benchmark Securities Issuance Calendar. The calendar provides opportunities for investors and other market participants to utilize Fannie Mae Benchmark Securities for their respective investment activities. According to the FHFA, Fannie Mae was the largest issuer of single-family mortgage-related securities in the secondary market during the first nine months of 2019. The company’s estimated market share of new single-family mortgage-related securities issuances was 39% for the third quarter of 2019.
On a weekly basis, Fannie Mae has the option to auction Benchmark Bills with maturities of one year or less. The size and maturity of the weekly Benchmark Bills auctions, if any, will be announced on the same day in which the auction occurs. Benchmark Bills auctions generally occur on Wednesdays between 9:00 a.m. and 9:45 a.m. Eastern Time.
The 2020 Benchmark Securities Calendar also identifies at least one calendar day per month for a Fannie Mae Benchmark Notes announcement. On each scheduled announcement date, Fannie Mae will either announce the maturity date of the Benchmark Notes offering or announce that a Benchmark Notes offering will not be made. Benchmark Notes offerings typically price and settle within a few business days of the announcement date.
Fannie Mae may elect to forgo any scheduled Benchmark Bills or Benchmark Notes issuance. Fannie Mae will inform the market when an issue is not offered on the specified date.
Fannie Mae’s securities are included in the GSE’s plan to transfer risk from homeowners. In the first half of 2019, the Fannie Mae and Freddie Mac transferred risk on $281.4 billion of UPB, and securites issuance accounted for 56% of the total Risk in Force (RIF) of $10.5 billion. Reinsurance transactions accounted for 26% of RIF, and lender risk sharing accounted for 18% of RIF.