Freddie Mac Said to Plan Risk-Sharing Bonds After Debt Soars
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Freddie Mac is planning to sell $966 million of bonds tied to the risk of homeowner defaults after investors that bought in earlier sales reaped gains, according to a person with knowledge of the transaction.
The government-controlled mortgage firm’s offering next week may include $230 million of debt set to receive A credit grades from Fitch Ratings and Kroll Bond Rating Agency, as well as $391 million of riskier unrated notes, said the person, who asked not be named because the information wasn’t public.