According to the company, the offering “represents one of the biggest 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,” said Freddie Mac SVP Donna Corley. “We plan regular and consistent issuances this year so that the amount of risk transferred to private investors will increase over time.”.
Over 65 investors participated in the deal, including a minimum of 20 new buyers, the company said in a launch on Friday.
The larger deal consisted of a portion with more protection against the risk of default. Issuance of risk-sharing securities by the company and competitor Freddie Mac began last year in an effort by policy makers to reduce the two company’s duties on the market.