Freddie Mac · OTC:FMCC

Freddie Mac — Debt Investor Presentation (April 2005)

10 slides from Freddie Mac's debt investor presentation, April 2005

  1. Slide 1: Reference REMIC Securities: A Mortgage-Backed Securities Investment Innovation

    Reference REMICSM Securities A Mortgage-Backed Securities Investment Innovation Offered by Freddie Mac April 2005

  2. Slide 2: Safe Harbor Statements

    Safe Harbor Statements Freddie Mac obligations Freddie Mac’s securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities, are not guaranteed by and are not debts or obligations of the United States or any federal agency or instrument

  3. Slide 3: Reference REMIC securities: product description

    Reference REMIC securities: product description ƒ Quarterly issuance of REMIC securities with a guaranteed maturity class (GMC) offered through a syndicate underwriting group; initial Reference REMIC security expected to be at least $2 billion ƒ Minimum GMC tranche size of $1 billion with shortened

  4. Slide 4: Reference REMIC securities: liquidity

    Reference REMIC securities: liquidity More liquid than traditional structured securities ƒ Quarterly issuance commitment, GMC minimum tranche size of $1 billion with multiple offerings of each tranche intended ƒ Syndication process ensures broad dealer sponsorship and secondary market support ƒ Firs

  5. Slide 5: Reference REMIC securities: transparency

    Reference REMIC securities: transparency Transparent structures and pricing ƒ Syndication process ensures transparent trade pricing at market clearing levels ƒ Intraday and daily closing prices posted to TradeWeb; daily pricing posted to Bloomberg ƒ PCs underlying the offered GMC are disclosed prior

  6. Slide 6: Reference REMIC securities: calendar-based predictability

    Reference REMIC securities: calendar-based predictability More predictable securities ƒ Pre-announced quarterly issuance calendar ƒ Maximum two Reference REMIC GMC deals issued per quarter ƒ Average life extension limited by shortened stated final maturity date ƒ Backed by Freddie Mac Gold PCs 5

  7. Slide 7: Reference REMIC securities: illustrative calendar

    Reference REMIC securities: illustrative calendar April 2005 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 Factors Released 3 4 5 6 7 8 9 R001 30-yr REG TradeWeb Offering settle Composite Circular Screen Supplement R001 Base Online 10 Printed 11 12 REMIC Issued 13 14 15 16 15-yr REG s

  8. Slide 8: Reference REMIC securities: pricing

    Reference REMIC securities: pricing Pricing on TradeWeb1 Platform Composite Monitor Sample Customer Inquiry Trade Ticket Sample 1Freddie Mac is not responsible for pricing and other information about its securities posted on Thomson TradeWeb. 7

  9. Slide 9: Reference REMIC securities: attributes comparison

    Reference REMIC securities: attributes comparison Product TradeWeb Daily Issuance Extension Syndicate Eligibility Closes Calendar Protection Led Reference REMIC √ √ √ √ √ Reference Notes √ √ √ √ √ Syndicated Callables √ √ √ √ TBA Passthroughs √ √ ABS √* √ REMIC securities √* Specified Pools √ * Some

  10. Slide 10: Reference REMIC securities: product details

    Reference REMIC securities: product details Reference REMIC Product Details Underlying Gold PCs PCs underlying the offered GMC are disclosed prior to pricing Guaranteed Maturity Class (GMC) Varying maturities based on market conditions (e.g., 3/5/7/10/12-year) Structure Announced during pre-marketin

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