Short Term Notes
Overview
Freddie Mac issues a variety of Discount Notes, fixed and floating rate short term debt of various sizes and maturities (less than or equal to one year). Some short term debt have embedded call options. These call options often allow investors to earn an enhanced yield over similar non-callable short term debt, but allow Freddie Mac to retire (call) the securities on specific dates before their contractual maturities.
Discount Notes
Discount notes are short term U.S. dollar denominated unsecured general corporate obligations.
- Maturities may range from overnight through one year, subject to daily corporate funding needs
- May be acquired in denominations as small as $1,000
- Are issued and maintained in book entry form through the Federal Reserve Bank of New York
- Are offered with a variety of options for settlement dates, maturity dates and sizes
Key Program Features
| Amounts | $1,000 minimum, in increments of $1,000 |
|---|---|
| Maturities | One year or less |
| Ratings | View our current credit ratings |
| Dealer group | Find an approved dealer |
| Offering time frame | Available on days other than (a) a Saturday, (b) a Sunday, (c) a day on which the Federal Reserve Bank of New York is closed, or (d) a day on which Freddie Mac’s offices are closed |
| Clearing and Settlement | Fed Book-Entry System |
| Principal Repayment | At par on maturity date, which must be a business day in the U.S. markets |
| Documentation | Global Debt Facility |
| Governing law | New York |
Short Term Notes Callable
Short term callable debt 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 short term callable debt in a variety of forms, with final maturities less than or equal to one year. 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 | One year or less |
| First call dates | Typically, as short as 2 weeks and as long as 11 months |
| 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 |
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.