Fannie Joins Freddie in Delisting Debt from Irish Stock Exchange


Fannie Mae joined Freddie Mac in announcing plans to delist some previously issued Connecticut Avenue Securities, which transfer the credit risk on residential mortgages, from the Irish Stock Exchange.

Fannie is also applying to have its previously issued CAS, as well as future CAS, listed on the Singapore Exchange.

Last week Freddie announced plans to delist its Structured Agency Credit Risk notes from both the Irish and Luxembourg Stock Exchanges. It cited the difficulty of complying with European Union regulations designed to prohibit insider trading.

The regulation, which took effect in July, subjects issuers of securities on previously unregulated exchanges across the EU to onerous obligations on information disclosure, insider lists and dealings by senior managers in respect of their securities traded on EU trading venues.

Both CAS and STACR transfer the credit risk of mortgages that their issuers insure. They are general obligations of Fannie Mae and Freddie Mac, but their performance is linked to the performance of a reference pool of mortgages. In the event that losses on the pool of mortgages reach a certain level, Fannie and Freddie can retain some or all of the principal of the notes.

Fannie will propose in its delisting application that it occur in March 2017. The final day for listing, however, will ultimately depend on the effective date granted by the Irish Stock Exchange.

Freddie has said it hopes to initiate the delisting process by the first quarter of 2017.

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