Medium Term Notes
Overview
Freddie Mac issues a variety of fixed and floating rate medium term notes (MTNs) of various sizes and maturities. Some MTNs have embedded call options. These call options often allow investors to earn an enhanced yield over similar non-callable MTNs, but allow Freddie Mac to retire (call) the securities on specific dates before their contractual maturities.
MTNs are generally issued through a reverse inquiry process where investors and dealers can customize the security to match their investments needs for yield, structure, and size.
Medium Term Notes (MTN) Callable
Callable debt is term debt that provides the issuer the right, but not an obligation, to call (or retire) the debt prior to the final maturity of the issue. Freddie Mac can issue callable debt in a variety of forms, with final maturities typically ranging from greater than one to fifteen years. Our debt securities can be issued with either single or multiple call dates, depending upon investors and Freddie Mac's requirements.
Popular types of call provisions include American (continuous call option on or after a certain date), European (single call option on a certain date) or Bermudan (periodic call options, e.g., on certain interest payment dates).
Key Program Features
| Amounts | $5 million and up |
|---|---|
| Maturities | Typically greater than One year through 15 years |
| First call dates | Typically, as short as 3 months and as long as 10 years |
| Ratings | View our current credit ratings |
| Offering time frame | Continuously throughout the year |
| Clearing and settlement | Fed Book-Entry System / For Globals: Fedwire, Euroclear, Clearstream |
| Minimum denominations | $1,000 or greater in increments of $1,000 / For Globals: $2,000 or greater in increments of $1,000 |
| Principal Repayment | In full at par on the earlier of the final maturity date or the first exercised call date |
| Day count convention | Typically 30/360 |
| Interest payment frequency | Depending upon investors' requirements, can be annually, semiannually, quarterly, monthly or other |
| Documentation | Global Debt Facility |
| Governing law | New York |
Recent Activity
Mortgage-Linked Amortizing Notes® (MLAN®)
Mortgage-Linked Amortizing Notes® (MLAN®) are senior unsecured debt obligations that have cash flows that mimic the principal payments of agency mortgage-backed securities (MBS) held in Freddie Mac's Mortgage-Related Investments Portfolio, up to the MLAN's maturity date. The mortgage-related collateral referenced by MLAN® may be a specific Freddie Mac Giant, Participation Certificate (PC), a combination of PCs or REMIC tranches, or any other agency mortgage-related security.
Key Program Features
| Amounts | Varies |
|---|---|
| Ranking/Security | Senior unsecured |
| Maturities | Typically 5-10 years |
| Ratings | View our current credit ratings |
| Clearing and settlement | Fed Book-Entry System |
| Structure | Amortizing bullet referencing mortgage-related securities |
| Redemption | Non-callable |
| Day count convention | 30/360 unadjusted |
| Interest payment frequency | Interest is paid on the prior month's outstanding principal balance |
| Documentation | Global Debt Facility |
| Governing law | New York |
Recent Activity
Disclaimer
Information contained on this website Freddie Mac is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements.
Any financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac does not undertake an obligation, and disclaims any duty, to update any of the information in those documents.