Freddie Mac unrated risk-sharing tranche nine times oversubscribed

By Matthew Scully
03 Apr 2014

Securitization investors sent a strong message to lawmakers this week that the private market is ready to take a load off taxpayers’ backs, piling into the riskiest and unrated slice in Freddie Mac's latest risk-sharing deal.

The M-3 tranche of STACR 2014-DN2 was nine times oversubscribed, indicating an eagerness for the kind of riskier credit wanted in future issuances from the enterprises.  

The tranche was priced at 360bp over one month Libor, according to Jason Marshall, head portfolio manager of Invesco Mortgage Capital. The ...

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