Federal Home Loan Mortgage Corp (OTCBB:FMCC) witnessed a volatile day of trade in the overnight trading session. After hitting an intraday high of $2.35, the stock gave up all of its gains from the top and the ended the trading session near the day’s open forming a gravestone doji, which is a bearish signal. The stock currently trades below all important daily moving averages. The momentum indicators for the stock have given a sell signal indicative of the fact that bears are in control at the moment. Traders believe the stock could head to levels of $2.161 in the near term.


Federal Home Loan Mortgage Corp (OTCBB:FMCC) has announced the pricing of its 7th Structured Agency Credit Risk transaction of 2015. As per the reports, the one thing that catches everyone’s attention is the price of STACR Series 2015-DNA3 series, which touches a whopping $1 crore mark.

Freddie Mac’s Effort To Bring Investment To Single-Family market

In post-depression era, the interest shown by private investors in single-family market was tremendous. However, things changed drastically after 2008-09, which also hit the business of Freddie Mac. But it has again started offering such products that can bring private investors back to this market, which has been long-forgotten. By this way, Freddie Mac can easily reduce its credit risk exposure through different credit risk transfer initiatives.

Management’s Call                                                                  

The senior management officials of Freddie Mac are delighted to announce this offering and hope that it will further pave the way for more such products that can help the company minimizing credit risk. According to Mike Reynolds, Vice President – Transfer Pricing, Freddie Mac, the company has been regularly executing different credit risk transfer transactions. It has always disclosed all the details to keep the proceedings transparent, and will continue to do so.

He further adds that STACR is more liquid, diverse and durable in nature than company’s previous offerings, and many other products available in the market at present. It can live up to Freddie Mac’s standards, maintain the top-notch quality and prevent fraudulent activities.

Pricing of this new STACR series goes as below-

  • The M-1 class is one-month LIBOR + spread of 135 basis points.
  • The M-2 class is one month LIBOR +spread of 285 basis points.
  • The M-3 class is one month LIBOR +spread of 470 basis points.
  • B class is one month LIBOR + spread of 935 basis points.

Morgan Stanley and J.P. Morgan are joint book-runners and co-lead managers, whereas Credit Suisse and Barclays are co-managers of this offering. It’s expected to settled on November 9, 2015.