Fannie Mae targets Asians for sub debt

Asian institutional investors continue to build exposure to the US mortgage agency.

Fannie Mae, the largest non-bank financial services company in the world and America's largest source of financing for home mortgages, is approaching Asian institutional investors about investing in subordinated debt.

Asian investors have become more sophisticated, says Linda Knight, senior vice president and treasurer. They are investing in securities with longer maturities, in callable bonds, and are now considering subordinated debt and structured debt for their own portfolio needs.

The organization has $1,019 billion of assets and guarantees an additional $1.211 billion in outstanding mortgage-backed securities. Today, 16.4% of that is held by investors in Asia and Japan.

A growth area in this region is high-net worth individuals. Last...

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