Market updates and sector developments

Fannie Mae (today) executed its fifth CIRT deal of the year, designated CIRT 2024 L-3, transferring US$337.2m of mortgage risk to 27 insurers and re-insurers.

The GSE retains risk for the first 170bp of loss on the US$8.2bn pool of loans, which were acquired between July and September 2023. If this US$139.8m layer is exhausted, the insurers and reinsurers will cover the next 410bp of loss to a maximum coverage of US$337.2m.