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CalHFA reports strong bond market reception; recent multifamily deal oversubscribed
Summary
CalHFA finance staff and underwriters reported that 2025 was the agency's largest on‑balance bond issuance year since 2008, with a recent multifamily transaction financing six projects that drew roughly two‑times oversubscription and priced 15–30 basis points tighter than comparable issuers.
CalHFA staff and the agency’s underwriters briefed the board on a successful year in the capital markets and a recent multifamily bond transaction.
Erwin Tan, CalHFA’s director of financing, said 2025 marked the agency’s largest on‑balance issuance since the 2008 financial crisis and pointed to improved execution and hedging results. "2025 was the largest year of on balance sheet issuance of bonds for CalHFA since the great recession in 2008," Tan said.
Underwriters described a recent multifamily Series B transaction that converted construction loans into permanent market financing: the deal financed six projects with about "$146,000,000" of bond proceeds and created roughly "935 units," they said. The order book included institutional and SMA accounts, and the underwriters reported about 2x oversubscription in orders in the first hours of the transaction and that CalHFA paper priced roughly "15 to 30 basis points" tighter than comparable issuers in the same week.
Underwriters and staff explained timing choices (pricing ahead of an expected Federal Reserve meeting) and investor composition: California retail and professional retail demand was strong and institutional participation was meaningful for long‑dated maturities.
Board members commended the financing team for improving CalHFA’s market profile and noted that regular issuance helps investors do credit work and support tighter spreads over time.
