Freddie Mac plans to issue a two-year Reference Notes security and price it on Wednesday, Oct. 20.
The government sponsored enterprise said the security (CUSIP 3137EACP2) would be “benchmark size” and settle on Friday, Oct. 22. It is due on Nov. 30, 2012.
The security will be offered through a syndicate of dealers headed by UBS Investment Bank, Goldman Sachs & Co. and Deutsche Bank Securities Inc.
The GSE has issued $26.5 billion in Reference Notes through Oct. 18 of this year as compared to $56 billion all of last year.
Freddie Mac issues Reference Notes and other debt from time to time in order to replace expiring debt or fund asset purchases.
The GSE has been directed not to grow its portfolio. It has been funding asset purchases to repurchase seriously delinquent loans out of pools since January, when an accounting change prompted the practice. There was a spike in activity as the change took effect earlier this year, but since then activity has ebbed and flowed in a more routine manner, a spokesman told this publication.
