Freddie Mac Announces Results of STACR Notes Tender Offer
On February 10, 2025, Freddie Mac (FMCC) disclosed the outcome of its recent tender offer for Structured Agency Credit Risk (STACR) Notes. The Offer, which was initially announced on January 24, 2025, invited holders of the Notes listed below to sell back their securities to Freddie Mac.
Notes Affected by the Tender Offer
The table below displays the classes of Notes that were subject to the Offer:
| Trust | Class of Notes |
|---|---|
| Trust 2005-ST1 | Class ST1-1, ST1-2, ST1-3, ST1-4, ST1-5, ST1-6, ST1-7, ST1-8, ST1-9, ST1-X |
| Trust 2006-ST1 | Class ST1-1, ST1-2, ST1-3, ST1-4, ST1-5, ST1-6, ST1-7, ST1-8, ST1-9, ST1-X |
| Trust 2007-ST1 | Class ST1-1, ST1-2, ST1-3, ST1-4, ST1-5, ST1-6, ST1-7, ST1-8, ST1-9, ST1-X |
| Trust 2008-ST1 | Class ST1-1, ST1-2, ST1-3, ST1-4, ST1-5, ST1-6, ST1-7, ST1-8, ST1-9, ST1-X |
Impact on Individual Investors
For individual investors holding the affected Notes, the tender offer represents an opportunity to sell their securities back to Freddie Mac at the price detailed in the Offer. This may be an attractive proposition for those looking to exit their positions or lock in profits, especially given the current market conditions.
Global Implications
On a larger scale, the tender offer could have implications for the mortgage-backed securities (MBS) market as a whole. Freddie Mac’s decision to repurchase these Notes could potentially impact the supply of MBS in the market, which in turn may influence interest rates and overall market sentiment.
Conclusion
Freddie Mac’s announcement of the tender offer results marks an important development for investors holding the specified STACR Notes. The repurchase of these securities may provide individual investors with an opportunity to exit their positions, while potentially influencing the broader MBS market. As always, investors are encouraged to consult with their financial advisors for personalized advice regarding their specific investment strategies.
- Freddie Mac (FMCC) announced the results of its tender offer for STACR Notes.
- The Offer affected several classes of Notes issued by various Trusts.
- Individual investors holding these Notes may choose to sell back their securities to Freddie Mac at the offered price.
- The tender offer’s impact on the MBS market remains to be seen.
