Gold Fixed-Rate PCs
With the implementation of Single Security, as of June 3, 2019, Freddie Mac will no longer issue 45-day Fixed-Rate Gold PCs.
Product Overview
Gold Participation Certificate (PC) securities are pass-through securities, each representing an undivided interest in a pool of residential mortgages. Freddie Mac securitizes mortgages with various terms. Freddie Mac offers traditional 30-year fixed-rate Gold PCs in addition to 20-year and 15-year Gold PCs until June 3, 2019. Freddie Mac Gold PCs are backed by fully amortizing mortgages.
Gold PCs differ from U.S. Treasury securities and other fixed-income investments in two ways. First, they can be prepaid at any time since the underlying mortgages can be paid off by homeowners prior to a loan’s maturity. Mortgage-backed securities generally provide a higher nominal yield than certain other fixed-income products due to this implicit call option. Second, Gold PCs are not backed by the full faith and credit of the United States, as are U.S. Treasury securities. Freddie Mac guarantees the timely payment of interest and principal on all Gold PCs. Gold PCs have a payment delay of 45 days from the time interest begins to accrue to the time the investor receives a payment.
Historical Resources
- Disclosure Guide (Pre 8/28/2017)
- Loan Disclosure Variable Descriptions (Pre 8/28/2017)
- Modified PC Disclosure Calculations (Pre 8/28/2017)
- PC Disclosure Calculations (Pre 8/28/2017)
- PC Prefix Guide (Pre 4/4/2018)
This product overview is not an offer to sell or solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Information Statement and related supplements.