Discount notes are U.S. dollar denominated unsecured general corporate obligations that are issued at a discount and mature at par.
- 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
Freddie Mac and the U.S. Dollar Discount Note Market
Our discount note issuance establishes us as one of the largest non-government providers of short-term debt in the world. The amounts and variety of discount notes sold in recent years testify to our ability to match investors’ short-term investment needs and maturity preferences with our overall funding requirements.
Pricing conventions for discount notes are the same as those used for T-bills, and Freddie Mac’s discount notes offer superior primary market availability. Our discount notes are offered continually to investors, with 24-hour postings available through Freddie Mac's dealer selling group. Active secondary market trading provides additional liquidity for these investments. The size of the program, coupled with the diversity of the investor base and strong dealer commitments, provide superior secondary market liquidity for Freddie Mac’s discount notes.
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