Market correction for latest agency risk-sharing RMBS

Freddie Mac
11 Sep 2014

Freddie Mac's seventh risk-sharing RMBS, which priced on Wednesday, is expected to settle in a more stable market than earlier issues under the program, which widened drastically last month.

Spreads were tight for the risk-sharing RMBS issues off of Freddie’s Structured Agency Credit Risk (STACR) shelf when the asset class debuted in July 2013, but widened to the point that some hedge funds received margin calls on some of the notes last month.

“That correction could ...

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