Freddie Mac opens UMBS exchange

Fannie Mae
By Alexander Saeedy
07 May 2019

Freddie Mac on Tuesday opened an exchange that will allow investors to trade eligible Freddie Mac securities for TBA-eligible Uniform Mortgage Backed Securities Mirror Certificates, which will be fungible with the new GSE security that will see Fannie Mae and Freddie Mac’s markets merge into one.

Freddie Mac has long been singled out as a major beneficiary of the sweeping UMBS reform, given that its bonds typically trade at a discount to that of its competitor, Fannie Mae. Once the markets merge, Fannie Mae’s premium should disappear and secondary market support for the US ...

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