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To: rails99 who wrote (90813)	5/11/2001 6:05:29 PM
From: isopatch	Read Replies (1) \| Respond to of 95453

Thx rails. It was a wild week.(g) Glad the trouble makers left. This thread is just fine when they leave us alone. I'd much rather post on topic that have to defend myself against an entire gang of attackers. I finally complained to the SI administrator about several of them and pointed out they were all based on HTP. Apparently he took quick action. It's much appreciated. Best Isopatch

To: rails99 who wrote (90813)	5/12/2001 4:25:38 PM
From: isopatch	Read Replies (1) \| Respond to of 95453

Fannie Mae hanging load of new paper. UPDATE 1-Fannie to start debt sales aimed at individuals By Lynn Adler NEW YORK, May 10 (Reuters) - In the latest outreach to Main Street by major U.S. corporations, Fannie Mae <FNM.N>, the No. 1 U.S. home funding source, said on Thursday it will begin offering senior debt securities aimed at individual investors. The new program, from one of the nation's largest borrowers, comes as buyers reach for more yield and quality in fixed-income assets after a dramatic stock market shakeout. "Certainly for the investor it's a great opportunity to get another good credit-quality instrument easily available," said Gemma Wright, director of market strategy for the Americas at Barclays Capital. Fannie Mae benefits by deepening its investor pool, she added. "Equities have gotten the lion's share of attention over the last couple of years, but I think bonds are going to have new interest as people are going to look for yield in other investment vehicles," Wright added. Fannie Mae expects to sell "investment notes" in several issues on a weekly basis, with maturities of one to 30 years, starting Monday. The notes will have various interest rates, interest payment dates, maturities and redemption provisions. Rated triple-A by Moody's Investors Service and Standard & Poor's, the highest investment-grade credit quality, the notes will be offered at par in $1,000 increments. ALL ROADS LEAD TO DIVERSITY Fannie Mae has historically targeted its debt to large institutional investors. "We have felt for a while that it's important for us to look at the retail base -- a very, very large population -- and figure out a way to get our debt securities efficiently into their hands," Linda Knight, Fannie Mae's senior vice president and treasurer, told Reuters. New technology aiding widespread distribution, an aging U.S. population that may boost demand for high-grade fixed-income debt, stock market volatility and Fannie Mae's desire to grow itsretail investor base are the main drivers behind the company's decision to start the program now, she said. Demand may rise naturally among ordinary investors who have been whipsawed by stocks. When stocks were surging, there was a feeding frenzy, particularly in high-tech stocks, that unbalanced many investor portfolios. The value of those holdings often plunged when equities were hammered this year. "The last couple of years have really demonstrated how volatile the equity market can be, and that may be a reason for retail investors to consider a little more diversification in their portfolios," Knight said. BRAND NAME RECOGNITION Fannie Mae is in good company. It joins the list of widely known corporations that have opened their doors wider to individuals in recent months, offering tailor-made debt investments and an alternative to widely available U.S. Treasuries. Housing finance giant Freddie Mac <FRE.N> since late March has been selling "FreddieNotes"; Tennessee Valley Authority, the largest U.S. wholesale electricity producer, started selling "electronotes" in April; Household Finance Corp., a unit of consumer finance company Household International Inc. <HI.N>, and Bank of America Corp. <BAC.N>, the No. 1 U.S. bank, started selling "InterNotes" for ordinary investors in March and January, respectively. Other companies may jump on this bandwagon. But it will be the high-profile and highly regarded names that are most successful, strategists said. "You don't have to sell Fannie Mae -- most investors know about them," said Mario De Rose, fixed income strategist at Edward Jones & Co., St. Louis., which is one of the dealer firms in the selling group. Fannie Mae will issue "in a variety of maturities, you know they'll be in the market every week and they're a household name," he said. "These are the things individual investors like to see." The company has not determined the size of the "investment note" program. Most of the notes will have call features, which give Fannie Mae the option of redeeming the notes during a specified period before maturity. The notes will not be redeemable at the option of the note holders. Merrill Lynch is the lead manager. Notes purchased from Merrill by the dealer selling group members may be resold to individual investors or to other dealers. REUTERS Rtr 18:55 05-10-01