Freddie Mac’s new $6 billion three-year Reference Notes security priced Wednesday at 100 to yield 1.375% or 27 basis points more than comparable Treasury notes amid a large number of issuers coming to market.
Other than coming to market at the same time as a large number of other issuers—something typical of the first week of January, when investors usually have cash to put to work—the offering was fairly routine, a Freddie Mac spokesman told this publication. Its distribution was similar to other recent deals, the spokesman said.
By investor type, distribution was as follows: investment managers, 56%; central banks, 28%; banks, 10%; insurance/pension funds, 4%; and “other,” 2%.
Geographically distribution was: U.S., 66%; Asia, 14%; Europe, 1%; and “other,” 19%.
A syndicate of dealers headed by Barclays Capital, Citigroup Global Markets, and J.P. Morgan Chase offered the security (CUSIP 3137EACR8). It is due on Feb. 25, 2014.
