WASHINGTON - Fannie Mae settled its last benchmark notes issuance of the year, shed some light on its benchmark debt program for next year, and recapped its long-term benchmark offerings for 2000 on Friday.
The issuance, for $6 billion of 6% five-year benchmark notes, was priced on Wednesday. Fannie will continue to auction weekly benchmark bills through yearend. Like Treasury debt, Fannie benchmark debt is floated according to a set schedule and matures over a variety of terms.
Fannie said that it will issue $130 billion to $140 billion of long-term debt next year, including at least $75 billion of noncallable benchmark notes and bonds.
The core dealer group for next year's benchmark notes and bonds issuances consists of ABN Amro; Bear, Stearns & Co.; Credit Suisse First Boston; Deutsche Bank Securities Inc.; Goldman, Sachs & Co.; HSBC Securities (USA) Inc.; J.P. Morgan Securities; Lehman Brothers; Merrill Lynch & Co.; Morgan Stanley Dean Witter & Co.; and Salomon Smith Barney.
In accordance with the 2001 benchmark notes and bonds calendar released in September, Fannie will announce its first January issues of 10-year benchmark notes and 30-year benchmark bonds on Jan. 11. The issues will be priced on Jan. 18 and settled four days later. The lead underwriters for the issues are J.P. Morgan Securities, Lehman Brothers, and Merrill Lynch & Co.
This year Fannie's issuance of benchmark notes and bonds rose 40% from last year, to $77 billion in 15 new issues and five re-openings. Domestic investors bought 72% of the offerings, while international investors purchased 28%. Europeans grabbed 13%, and Asians 9%.