AI
Tuesday, August 19, 2008 2:09:03 PM
FRE Calls looks like they got some financing lined up...
Freddie Pays Big Premium on Notes
By Anusha Shrivastava and Prabha Natarajan
Freddie Mac found more than enough investors for its $3 billion five-year note offering Tuesday, but paid a record-high premium to compensate investors for the risk to get the deal done.
The debt sale came as concerns about the financial viability of the mortgage giant and its cousin Fannie Mae have resurfaced.
Freddie sold the notes at 113 basis points over comparable Treasurys, the highest premium it has ever offered for a five-year note. The notes yielded 4.172% at sale.
On Monday, market participants had expected the notes to sell with a premium of 105 basis points, but then they ...
Freddie Pays Big Premium on Notes
By Anusha Shrivastava and Prabha Natarajan
Freddie Mac found more than enough investors for its $3 billion five-year note offering Tuesday, but paid a record-high premium to compensate investors for the risk to get the deal done.
The debt sale came as concerns about the financial viability of the mortgage giant and its cousin Fannie Mae have resurfaced.
Freddie sold the notes at 113 basis points over comparable Treasurys, the highest premium it has ever offered for a five-year note. The notes yielded 4.172% at sale.
On Monday, market participants had expected the notes to sell with a premium of 105 basis points, but then they ...
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