Repurchase Operation Details: Callable Notes
Freddie Mac conducts periodic repurchases of outstanding U.S.
dollar denominated senior callable notes as a measure to strengthen our asset
/ liability management, improve focus on our securities’ performance and
enhance price transparency of this asset class. The callable repurchase operations
complement Freddie Mac’s Reference Notes® and €Reference Notes®
securities periodic repurchase operations which have commenced in June 2001
and December 2002, respectively. Freddie Mac conducts its periodic repurchase
operations via the Internet with designated dealer group members.
Transparent operations. Freddie Mac provides a two-business
day advance public notice of callable repurchases. In exceptional circumstances,
we may conduct periodic repurchase operations with one-hour notice. Announcements
will include target issues, the submission deadline for offers, the maximum
purchase amount, and settlement date. Freddie Mac announces periodic repurchase
operations via designated dealers, our web site, and all major newswires.
Periodic repurchase
operations may
target several
issues at the
same time, and
dealers may submit
several offers
per issue. Participating
dealers submit
offers, expressed
in yield in increments
of one-tenth
of a basis point,
via the Internet.
After the offering
submission deadline,
Freddie Mac considers
all offerings
together and
accepts those
offerings which
best meet repurchase
operation objectives.
Freddie Mac expects
to provide an
automated confirmation
of trade to participating
dealers as soon
as possible following
completion of
the repurchase
operation. Within
15 minutes following
the offering
submission deadline,
Freddie Mac discloses,
via its web site
and major newswires,
the amount of
each issue repurchased
and the overall
offer-to-cover
ratio.
Enhancing Price Transparency and Performance.
The callable periodic repurchase operations are designed to enhance price transparency
and performance of this asset class. Freddie Mac repurchases only U.S. dollar
denominated, senior callable issues that have been outstanding at least 3 months
since their most recent issuance or re-opening. Callable notes are eligible for repurchase both before
and after their respective call date.
Predictable timetable. Freddie Mac expects
to provide a two-business day advance notice, and post results within 15 minutes
after the offering submission deadline. Any departure from this timetable should
be rare and only for exceptional circumstances. Information sources (such as
Bloomberg and Freddie Mac’s website) are updated to reflect any changes
in amounts outstanding of callable notes. Repurchased securities are permanently
retired.
Freddie Mac
will not repurchase
callable notes
during the period
beginning three
business days
prior to a Syndicated
Callable issuance
announcement
and ending on
the settlement
date.Settlement
of all callable
repurchases will
be via the Fed
wire on the following
business day
after the trade
date ("T+1").
|
