#United States #Washington #Fannie Mae #CAS Notes #CAS Securities

Fannie Mae Reports Tender Offer Results

On March 2, 2026, Fannie Mae (OTCQB: FNMA) shared the results of its recent cash tender offers for Connecticut Avenue Securities® (CAS) notes. This announcement highlights the interest and participation in the tender offers, which were initiated to repurchase certain notes at fixed prices. The details and participation rates provide insight into investor confidence and the company's strategic financial maneuvers.

Overview of the Tender Offers

Fannie Mae's tender offers pertained to a collection of CAS notes. These notes are instruments that help transfer mortgage credit risk from Fannie Mae to private investors, thereby assisting in stabilizing the housing market. The offers were executed based on predetermined terms articulated in the Offer to Purchase and related documents issued on February 23, 2026.

During the offer period that concluded at 5:00 PM New York City time on February 27, 2026, Fannie Mae reported that a total of $961 million in original principal amount of notes were validly tendered, indicating robust investor activity. This level of participation reflects both the security's appeal and the current market conditions.

Breakdown of Tendered Notes

The tendered CAS notes covered a range of series and classifications. Here is a summary of the key details regarding the tendered notes:

• - Connecticut Avenue Securities, Series 2017-C02, Class 2M-2C Notes saw an impressive 100% of the $31,757,757 principal balance tendered, representing a strong investor demand for this particular security.
• - Other notable performances included the Series 2017-C03, Class 1M-2C Notes, and Series 2018-C04, Class 2M-2 Notes, where 100% of the principal amounts were also successfully tendered.
• - Various other securities showed differing levels of offer acceptance, with percentages ranging from 0% to 96.90% for other notes in the offering.

This variability in tender percentages points to investor preferences and market trends affecting bond selections and overall investment strategies.

Upcoming Processes and Settlement

The settlement for the notes accepted for purchase in these offers is slated for March 3, 2026. It’s noteworthy that the lead dealer managers for this operation were BofA Securities, and Wells Fargo Securities played a pivotal role as dealer managers throughout the process. Global Bondholder Services Corporation acted as the tender agent, serving vital roles in managing the execution of the offers effectively.

Conclusion

Fannie Mae’s announcement illustrates not only the functioning of capital markets but also the dynamic nature of investment strategies among institutional players in the mortgage-backed securities sector. The successful execution of these tender offers reflects Fannie Mae's ongoing commitment to managing its risk profile and bolstering investor confidence during times of market volatility. This move enables the organization to maintain its crucial role in establishing stability in the housing finance market.

This tender offer concluded with a clear message: investor interest remains strong in the CAS market, which continues to evolve in response to broader economic conditions. As Fannie Mae navigates its path ahead, it will be crucial to observe how these activities shape its financial groundwork and stakeholder relationships moving forward.