News
Freddie Mac Announces $1.2B of Multifamily Securities
August 20, 2015
Photo from Freddice Mac website
Freddie Mac Multifamily will issue $1.2B in K-P02 Certificates (the 17th this year), the company’s multifamily securities backed by 70 multifamily mortgages in Freddie’s portfolio. First issued in October 2012, the K-P series of securities are purchased and guaranteed by Freddie Mac and issued by a related trust as part of a strategy to move risk away from taxpayers and to private investors who buy the unguaranteed subordinate bonds. Those who do get the securities—which must be applied for, rather than purchased—gain a stable cash flow and credit enhancement, giving them considerable investment options. The Certificates are expected to be settled by Aug. 27. [MW]
