Freddie Mac Launches $3 Billion, 10-Year Note At +99 BPS Over Treasurys
March 26 2009 - 9:53AM
Dow Jones News
Freddie Mac (FRE) on Thursday launched its $3 billion, 10-year
note.
The mortgage company revised its initial price talk to 99 basis
points from 100 basis points over comparable Treasury yields.
The deal, with Citigroup Inc. (C), Barclays PLC (BCS) and
JPMorgan Chase & Co. (JPM) as lead managers, is expected to
price later Thursday.
Meanwhile, Freddie hasn't launched the two-year note that also
was announced Wednesday. That benchmark deal is expected to be $5
billion or more in size. The initial price talk on it was 72.5
basis points over comparable Treasury yields.
Bank of America Merrill Lynch, Credit Suisse Group (CS) and RBS
Greenwich Capital are the lead managers on the two-year deal.
Currently, risk premiums on the most recently priced two-year
note from Fannie traded at 65.5 basis points, while Freddie's
4.875% note due 2018 was at 82 basis points, according to TradeWeb
data.
-By Prabha Natarajan, Dow Jones Newswires, 201-938-5071;
prabha.natarajan@dowjones.com