Fannie Mae’s New CAS REMIC: Why REITs Are Suddenly Interested in CRT Deals

Fannie Mae has been issuing credit-risk-transfer (CRT) deals under its Connecticut Avenue Securities (CAS) program since 2013. The investor base for these securities has traditionally been a diverse group of asset managers, hedge funds, private equity firms, and insurance companies. The deals had been largely ignored by Real Estate Investment Trusts (REITs), however. The following…

REITs

Tuning Machine Learning Models

Tuning is the process of maximizing a model’s performance without overfitting or creating too high of a variance. In machine learning, this is accomplished by selecting appropriate “hyperparameters.” Hyperparameters can be thought of as the “dials” or “knobs” of a machine learning model. Choosing an appropriate set of hyperparameters is crucial for model accuracy, but...