Financial Times FT.com

Fannie raises $7bn in two-year issue

By Nicole Bullock and Michael Mackenzie in New York

Published: September 11 2008 03:00 | Last updated: September 11 2008 03:00

Fannie Mae yesterday sold $7bn of bonds - its largest syndicated benchmark note ever - after the weekend bail-out of the mortgage financier by the US government.

Fannie paid a risk premium of 70 basis points over comparable Treasuries for two-year debt, a sharp drop from similar bond sales just last month. The order book totalled more than $9bn, a person familiar with the transaction said.

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