Freddie Mac will offer its first external 55-day participation certificate pass-through security, the government-sponsored enterprise announced Monday.
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The single-class security will be backed by a fixed-rate multifamily mortgage loan worth $17 million. Freddie Mac expects the loan to settle March 24. Freddie Mac will underwrite and review the credit of all loans.
"The 55-day PC further enhances our ability to transfer economic risk away from U.S. taxpayers. We hope to issue a few 55-day PCs this year backed by a single loan or a pool of aggregated loans, pending market conditions," said Victor Pa, Freddie Mac vice president of investments and advisory, in a press release.
Competitive bidding will be held on the 55-day PCs.
