Skip to Content

Gold PC Exchange

At this time, we expect that beginning in May 2019 – just prior to the implementation of the Single Security Initiative – Freddie Mac will begin offering holders of then eligible 45-day, TBA-eligible and non-TBA-eligible PCs and Giants the option to exchange their 45-day securities for 55-day Freddie Mac Mirror securities.

For exchanges of TBA-eligible securities, the corresponding 55-day security will be a Freddie Mac UMBS or Supers. For exchanges of non-TBA eligible securities, the corresponding 55-day security will be a Freddie Mac MBS or Giant MBS. Only securities not 100% committed to a resecuritization are eligible to be exchanged.

Most security characteristics of the new 55-day securities will mirror their corresponding 45-day securities, except for four characteristics. The 55-day security will receive a new prefix, pool number, CUSIP, and issuance date. The issuance date will reflect the date the Mirror Security is created and placed in Freddie Mac’s account.

Most importantly, the cash flows of the UMBS, Supers, MBS or Giant MBS will ultimately be backed by the same loans as the original PC or Giant PC, and thus the factor of the 55-day security will match the current factor of the corresponding eligible 45-day security at the time of exchange.

  • Proposed Exchange Process

    At this time, we expect that Gold PC and Giant holders will be able to choose between two exchange paths: one facilitated by a dealer using Freddie Mac’s Dealer DirectSM portal, and one that is direct with Freddie Mac. View the Exchange Options document to learn more.

    More details on the specific processes will be shared with the market soon.

  • Creation of Mirror Securities for Exchanges

    To facilitate exchanges, Freddie Mac will create 55-day Mirror Securities on a one-for-one basis for all exchange-eligible 45-day PCs and Giants. Mirror security issuance began in August 2018 to Freddie Mac’s own account at the Federal Reserve, and is visible on our Daily New Issue File, denoted as Mirror securities. We believe the early issuance of Mirror securities enables market participants to analyze their holdings, build in pricing and disclosure in advance of the exchange offer. Freddie Mac mirror test files are available on our Technical Resources page.

  • Proposed Exchange Float Compensation

    Freddie Mac will provide fair compensation for the additional 10 days in payment delay when an investor exchanges 45-day PCs for 55-day securities through a one-time cash payment. Freddie Mac expects to offer a schedule of payment rates that will be informed by fair value, with at least one payment rate for every term and coupon combination. Fair value estimates will be determined using OAS models that we believe are commonly used by market participants. Payment rates will be expressed in ticks, with the cash payment calculated as the payment rate multiplied by the UPB of exchanged securities. Payments offered to market participants could differ from model values and Freddie Mac reserves the right to change values over time.

    Freddie Mac also expects to offer payment adjustments (payups) to the compensation rate for pools that have certain collateral characteristic that may have a material impact on the value of the 10 Days' Delay Compensation. We expect these payups will be added to the base compensation rate based on the term and coupon of the security to determine the final payment rate for the security.

    * Exchange Float Compensation prices are not based on actual, current values.
    * For the purposes of this sample grid, all payup cohorts are listed with a value of 0.
    * For superconforming pools, the tier begin and tier end are listed as 9999 because the superconforming payup is based on the security prefix, not the loan balance.
    * Payup tier values are subject to change but payup types (Loan Balance, LTV, FICO and WALA) are not.

  • Disclosures related to the Mirror Securities and Exchange Transactions

    In August 2018 Freddie Mac began to issue Mirror securities. Most security characteristics of these securities mirror the 45-day Gold PCs eligible for exchange to 55-day securities. The Mirror securities are disclosed on our Daily New Issue File once Freddie began in August. The Mirror has a new prefix, pool number, CUSIP and issue date but the other information matches the data as of the 45-day Gold PC issuance except for the factor which is less than 1. The new pool numbers begin with the letter ‘Z’.

    Freddie Mac will publish several new exchange-related disclosures. The Cumulative Exchange Activity report is published daily as the Mirror securities are issued. The other three reports will be published when exchange transactions begin in 2019.

    File Name Description
    Cumulative 45-Day to 55-Day Exchange Activity Provides information on each Mirror Security as it is issued. This report provides the mapping of the 45-day PC or Giant to the corresponding 55-day Mirror Security. This is a daily file.
    Daily 45-Day to 55-Day Exchange Activity Beginning with Exchange Transactions in 2019, this file will provide information on the exchange transactions settled on the preceding business day, including the original par amount exchanged, pool numbers and CUSIPs of the 45-day and 55-day securities. This will be a daily file.
    Aggregate Level 1 Collateral Exchange Activity To help the market with prepayment analysis, this report will show all outstanding PCs including those that have been resecuritized in a Giant or a REMIC. This will be a daily file.
    Outstanding Supply Report Each month Freddie Mac will publish a table showing the outstanding UPB, by term and coupon, for 45-day securities, exchanged Freddie 55-day securities, new issue Freddie 55‐day securities and Fannie Mae securities.

This is not an offer to buy or sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC); all other reports Freddie Mac files with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act), excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.

The financial and other information contained on this page and 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 undertakes no obligation, and disclaims any duty, to update any of the information in those documents.

These materials may contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s most recent Annual Report on Form10-K, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at and the SEC’s website at The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this page.