Freddie Comes to Market with Another MF Bond

Freddie Mac is issuing another $1 billion security backed by apartment loans as part of its 'K-Certificates' program. The mortgage-backed securities are expected to price on or about June 11, and settle later in the month. In total, 83 rental buildings serve as collateral for the multifamily bonds. A few months back Freddie came to market with a $1 billion K-Certificate deal. The GSEs are a key source of liquidity for the apartment market with commercial banks remaining skittish about commercial lending. Bank of America Merrill Lynch, and Deutsche Bank Securities Inc. are the co-lead managers and joint book runners on the transaction. Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., Jefferies & Company, and Wells Fargo Securities LLC are the co-managers. The K-007 multifamily MBS deal is the third K-Certificate deal this year. Freddie plans to issue three more K-Certificate deals this year.