Freddie Mac Surprises With Mega Sale

Last week's huge, unscheduled Freddie Mac sale of agency bullets shocked traders with its size and proximity on the yield curve to the Federal Home Loan Banks' two-year global bond that was priced the same day.

  • 03 Jun 2005
Email a colleague
Request a PDF
Last week's huge, unscheduled Freddie Mac sale of agency bullets shocked traders with its size and proximity on the yield curve to the Federal Home Loan Banks' two-year global bond that was priced the same day. The $3 billion Freddie Mac February '07 bond came on top of the FHLBs' scheduled $4 billion June '07 bond, cheapening up both issuances with the extra supply. Freddie Mac's off-calendar bullets have generally only gone up to $1-1.5 billion, according to an agency strategist. "It's not good for Freddie Mac, it's not good for Home Loan and it goes against the common courtesy and etiquette of the market," one senior agency trader griped.

Other agency traders saw the move as a straightforward league-table play by the                                                                                                                                                                                                                                                                                                                                     underwriters. "[The leads – Banc of America Securities, Deutsche Bank and Merrill Lynch] are hoping they'll make up the loss [for selling into a congested market] with the next global bond," another agency trader said. But even as a league-table play, the sale is noteworthy for coming at the beginning of the month rather than the end to bolster league standings, the strategist noted.

Dan Markaity, manager of global public credit at Merrill, and Pat Coleman, head of the agency and sovereign business at BofA, did not return calls by press time. Jeanmarie Genirs, head of agency debt at Deutsche Bank, declined comment.

  • 03 Jun 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 414,341.60 1584 9.03%
2 JPMorgan 377,311.36 1724 8.23%
3 Bank of America Merrill Lynch 358,416.32 1295 7.81%
4 Goldman Sachs 266,063.47 914 5.80%
5 Barclays 264,598.20 1056 5.77%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 44,979.63 190 6.68%
2 Deutsche Bank 37,125.85 136 5.51%
3 BNP Paribas 36,403.69 206 5.41%
4 JPMorgan 33,752.71 110 5.01%
5 Bank of America Merrill Lynch 32,865.23 106 4.88%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 22,398.41 104 8.72%
2 Morgan Stanley 18,608.72 99 7.25%
3 Citi 17,768.49 110 6.92%
4 UBS 17,372.80 70 6.76%
5 Goldman Sachs 17,228.66 97 6.71%