Recently, Barclays announced that it would add Commercial Mortgage-Backed Securities (CMBS) issued by Fannie Mae and Freddie Mac to its U.S. Aggregate and Global Aggregate indices beginning June 30, 2014. This is an important development for Fannie Mae's Multifamily DUS® platform.
Given the increasing size of DUS MBS and the importance of Agency CMBS in the market, we think this update to the Barclays indices makes perfect sense. As part of these well established indices, Fannie Mae GeMS™ will reach a broader investor base. The increased demand should lead to better liquidity for DUS MBS and, ultimately, greater support for the country's rental housing market.
Prior to formal inclusion in the U.S. Aggregate Index, Barclays intends to launch a standalone U.S. Agency CMBS benchmark as part of its U.S. CMBS Index. Fannie Mae’s GeMS and ACES® REMICs issued after January 1, 2009 will be included in the initial population of Agency CMBS for the indices. Fannie Mae has issued $33.7 billion in GeMS and ACES REMIC securities since 2009.
Read the latest edition of our Fannie Mae Multifamily Capital Markets Commentary for more information.
Director, Multifamily Capital Markets