In the article, "Money funds buy most of Fannie Mae SOFR bond issue," Reuters reports that U.S. money market funds "bought most of a $2 billion Fannie Mae floating-rate debt offering referenced against the Secured Overnight Financing Rate (SOFR)." "Fannie Mae and other companies have been issuing more floating-rate bonds that are benchmarked against SOFR, which is an alternative to the London interbank offered rate (LIBOR). LIBOR, tarnished by rigging scandals, is expected to be phased out in 2021," Reuters stated. "It is important to maintain momentum in the SOFR market, and Fannie Mae is proud to demonstrate commitment to the Alternative Reference Rate Committee's (ARRC) efforts to develop LIBOR-alternatives," said Fannie Mae Treasurer Nadine Bates. According to Reuters, money funds bought 83.2 percent of the 18-month bond issue. The agency continued, "Commercial banks, insurance companies, and state and local governments bought the rest of the issue, which was priced at a spread of 6 basis points over SOFR, Fannie Mae said. Barclays Capital Inc., Citigroup Global Markets Inc., and Nomura Securities International Inc. were the lead underwriters of the Fannie Mae SOFR transaction. CastleOak Securities and Mischler Financial Group were part of the selling group," Reuters noted.

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