Freddie Mac recently sold $1.5 billion of conforming non-agency mortgage securities through a single broker-dealer, according to an official at the firm. The move raised eyebrows among outside mortgage-backed professionals who called the sale a significant move, even by Freddie’s standards, because it involved one asset type and was conducted through one dealer. They speculate that Freddie was either looking to book profits and take advantage of tight spreads or that the trades are part of a broader, gradual shift out of the non-agency market. Douglas Robinson, Freddie Mac spokesman, declined to comment on the transactions. The official at the counterparty for the trades noted that Freddie Mac was “aggressively selling” these assets at a time when the spreads are tightening and there is currently an increasing demand for non-agency securities because they offer higher yields than traditional pass-throughs.
Freddie Mac Said To Unload Non-Agency MBS
