UPDATE: Freddie Mac Announces 3-Year Reference Note
May 18 2009 - 11:06AM
Dow Jones News
Freddie Mac (FRE) announced it will sell new three-year notes on
Tuesday.
The mortgage finance company didn't specify the size of the
deal, but it is expected to be of moderate size within $5
billion.
The initial price talk on the deal is 49 basis points over
comparable Treasury yields. This offers a significant premium over
the existing Freddie 2.125%, three-year note that was sold in
February, which now trades at 36/33, according to Tradeweb
data.
The notes, which will be due June 15, 2012, will be sold on
Tuesday. Settlement is on May 21.
Barclays Capital, Inc., Banc of America Securities and J.P.
Morgan Chase will lead the deal.
-By Agnes T. Crane, Dow Jones Newswires, 201-938-2122;
agnes.crane@dowjones.com