Freddie Mac Prices First Credit Risk Sharing Deal Of The Year

Government-sponsored enterprise Freddie Mac has announced the pricing of its first Structured Agency Credit Risk (STACR) transaction of the year.

According to the company, the $1 billion offering of debt notes ‘represents one of the largest subordinate mortgage credit securitizations ever brought to market.’

‘We are pleased with the investor interest and demand for this product as more investors are buying the bonds,’ says Donna Corley, senior vice president of Freddie Mac, in a statement. ‘We plan regular and consistent issuances this year so that the amount of risk transferred to private investors will increase over time.’

Kevin Palmer, vice president of single-family strategic credit costing and structuring for Freddie Mac, adds, ‘We've introduced three bonds for the STACR 2014 series, compared to the two we offered in 2013, which provides more credit protection to Freddie Mac and enhances the product mix for investors. We believe these enhancements attracted even more investors, as we saw over 20 new investors in the book. We anticipate that more investors will continue to be attracted to the risk sharing program.’

More than 65 investors participated in the deal, including at least 20 new buyers, the company says.

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