Freddie Mac mandates banks for its second risk-sharing MBS
NEW YORK, Oct 30 (IFR) - Government-sponsored mortgage-finance company Freddie Mac has mandated Barclays as sole bookrunner on its second risk-sharing mortgage-backed security, a US$630m trade that is expected to price early next week.
Barclays, along with Morgan Stanley, will be the joint lead underwriters on the deal, titled Structured Agency Credit Risk 2013-DN2. A US$245m slice of the deal being sold to investors received a Baa1/BBB- rating by Moody's and Fitch respectively.
The GSE's first risk-sharing deal priced in July, and Fannie Mae priced its own version earlier this month.
The new bond programs come after the Federal Housing Finance Agency (FHFA), a government regulator, directed both GSEs to share out the risk on US$30bn each of their loan portfolios, as part of a wider initiative to minimize their vast footprint in the US residential mortgage industry.
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