Freddie Mac

  • 01 Nov 2002
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Rating: Aaa/AAA/AAA

Amount: $1bn Freddie SUBS

Maturity: November 5, 2012

Issue price: 99.769

Coupon: 5.25%

Spread at launch: 130bp over the 4.375% August 2012 UST

Call option: at par on 05/11/07

Launched: Wednesday October 30

Joint books: Citigroup/SSB, Credit Suisse First Boston, Lehman Brothers

Bookrunners' comments:

CSFB - The vast majority of paper was distributed into the US. Freddie does not release any aggregate statistics on the demand profile, but from our experience the majority is domestic.

There was heavy participation from insurance companies, states and municipalities and money managers. You typically get the traditional agency buyer base, but we also see corporate bond investors, attracted by the relatively wide spread for such a stable and strong credit quality.

The bonds performed well in the aftermarket, outperforming Treasuries by 0.5bp and swaps by 2bp on the day.

Lehman - The SUBS deal came out at 130bp over the 10 year and closed (Thursday) at 129.5bp-128.5bp, so it has traded extremely well even with the rally in the Treasury market.

Market appraisal:

"...it is hard to determine what was accomplished here.

Freddie made a representation to Congress that it would issue subordinated debt as an early warning mechanism, something that would reflect the market's assessment of its credit risk.

Fannie Mae has been dutifully issuing bullets, but Freddie Mac has been issuing callables, which seems to defeat the object.

They tell you virtually nothing."

  • 01 Nov 2002

All International Bonds

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 92.59 388 8.96%
2 Citi 85.30 278 8.25%
3 BofA Securities 63.15 265 6.11%
4 Barclays 58.01 223 5.61%
5 Deutsche Bank 55.74 184 5.39%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 60.87 123 14.06%
2 Credit Agricole CIB 28.59 93 6.60%
3 Santander 25.41 90 5.87%
4 JPMorgan 23.88 61 5.52%
5 UniCredit 21.51 103 4.97%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 2.07 11 10.42%
2 BofA Securities 1.40 6 7.01%
3 Citi 1.37 7 6.87%
4 Morgan Stanley 1.36 6 6.85%
5 JPMorgan 1.31 7 6.59%