Market moves and sector developments

Fannie Mae is in the market with a US$707.6m deal, designated CAS 2024-R04 and its fourth CAS deal of the year.

The reference pool consists of 53,682 residential mortgages with an unpaid principal balance of US$18.6bn. All mortgages have an LTV of between 60.1% and 80%.

Nomura is the structuring lead and Bank of America Securities the co-lead manager.

There are four classes of offered notes – A1, M1, M2 and B1. They are sized at US$220.4m, US$220.4m, US$176.3m and US$90.4m respectively.

CAS 2024-R04 is the first CAS deal issued by Fannie Mae to include an offered Class 1A-1 note.

According to KBRA, “The offered Class 1A-1 Notes benefit from its shared receipt of the Senior Reduction Amount alongside the Fannie Mae retained 1A-1H Reference Tranche.”