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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 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 12 months through 30 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

Mortgage-Linked Amortizing Notes® (MLAN®)

Mortgage-Linked Amortizing Notes® (MLANs®) 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 MLANs® 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

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.