Freddie Mac Gold MACS Roadshow

Accompanying Slides

Welcome to Freddie Mac's Gold MACS roadshow. Today we will introduce you to the latest enhancements to our Gold MACS program; namely, the ability to create floater and inverse floater securities that can be exchanged for the underlying Giant PC.

Before beginning, let me remind you to review Freddie Mac's Safe Harbor Statements at the end of this presentation. These include the forward-looking statement disclaimer and a reminder that this presentation is neither an offer to sell nor a solicitation of an offer to buy securities.

Floater and Inverse Floater Gold MACS
Freddie Mac is pleased to announce an exciting enhancement to its Gold MACS program: Gold Modifiable and Combinable Securities (MACS) are stripped Giant certificates with a modifiable and combinable feature that enable investors to exchange a fixed-rate Giant PC for Interest-Only (IO), Principal-Only (PO), or a variety of synthetic coupon PCs from a single strip offering The new floater/inverse floater enhancement allows for floater and inverse floater pairs to be produced in addition to the synthetic coupon PCs The enhanced MACS now provide owners with access to IOs, POs, floaters, IO floaters, inverse floaters, inverse IO floaters, synthetic coupon PCs, or the underlying Giant PC from the same structure

Floater and Inverse Floater Gold MACS

Freddie Mac is pleased to announce an exciting enhancement to its Gold MACS program:
- Gold Modifiable and Combinable Securities (MACS) are stripped Giant certificates with a modifiable and combinable feature that enable investors to exchange a fixed-rate Giant PC for Interest-Only (IO), Principal-Only (PO), or a variety of synthetic coupon PCs from a single strip offering
- The new floater/inverse floater enhancement allows for floater and inverse floater pairs to be produced in addition to the synthetic coupon PCs
- The enhanced MACS now provide owners with access to IOs, POs, floaters, IO floaters, inverse floaters, inverse IO floaters, synthetic coupon PCs, or the underlying Giant PC from the same structure

First, the term "MACS" stands for "modifiable and combinable securities." This feature of Freddie Mac's Stripped Giant Certificates provides the ability to exchange a Giant PC for Interest-Only (IO), Principal-Only (PO), or synthetic coupon PCs from a single Gold Giant PC. Freddie Mac has issued numerous stripped Giant Certificates with this feature, and they are known by their sequential series numbers, such as Series 234, 235, and so on.

The new enhancement that we are announcing today expands the types of securities that a holder of a stripped Giant certificate can create, to also include floater and inverse floater classes. And, as with any other type of Gold MACS, the new floater and inverse floater classes may be exchanged for the underlying Giant PC.

Investor Benefits
Flexible exchanges into and out of floaters and inverse floaters Gold MACS allow for the holders of both floating and inverse floating rate classes to exchange those classes for the underlying IO and PO strips, and/or the underlying Gold Giant PC Flexible exchanges between different versions of floaters and inverse floaters Gold MACS now offer the ability to take the new floater class, add the appropriate amount of IO, PO or inverse floater, and increase or decrease the margin and/or cap of the floater and inverse floater Exactly the same benefits as the original strips program The IO, PO and synthetic coupon classes may still be exchanged as they were previously

Investor Benefits

Flexible exchanges into and out of floaters and inverse floaters
- Gold MACS allow for the holders of both floating and inverse floating rate classes to exchange those classes for the underlying IO and PO strips, and/or the underlying Gold Giant PC

Flexible exchanges between different versions of floaters and inverse floaters
- Gold MACS now offer the ability to take the new floater class, add the appropriate amount of IO, PO or inverse floater, and increase or decrease the margin and/or cap of the floater and inverse floater

Exactly the same benefits as the original strips program
- The IO, PO and synthetic coupon classes may still be exchanged as they were previously

A holder of an enhanced Gold MACS may still access all of the product types of the original MACS program – that is, IOs, POs and synthetic coupons. As always, holders may exchange these classes for the underlying Giant PCs.

In addition, holders of enhanced Gold MACS may now create a wide variety and combination of floater and inverse floater securities with different margins, caps, floors, multipliers, initial coupons and principal payment options. The critical feature of Gold MACS is the ability of the holder to exchange all of these product types, in their proper proportions, for the underlying Giant PC. We illustrate the original and enhanced Gold MACS on the next two slides.

Original Gold MACS

Freddie Mac's original Gold MACS allowed investors to easily exchange between:
- TBA-eligible Gold Giant PCs,
- IO and PO strips, and
- Various pre-determined synthetic coupons

On this slide, the features of original Gold MACS are shown. The fixed-rate Gold PC collateral is combined to form a Giant that is then stripped into its IO and PO classes. These classes may be combined to form a pre-determined set of synthetic coupon alternatives, as set forth in the related Offering Circular Supplement relating to each specific series. And, for an exchange fee determined by Freddie Mac, these classes may be subsequently exchanged for the underlying IO and PO classes or the Gold Giant PC.

New Gold MACS
Now, Gold MACS enable investors and dealers to easily exchange between: Pairs of floaters, IO inverse floaters and PO securities or Pairs of floater and inverse floater securities or Pairs of IO floaters and PO securities

Enhanced Gold MACS enable the creation of new types of securities – floater and IO inverse floaters with excess PO strips, or, floater and inverse floater securities. These classes may be formed according to a pre-determined set of alternatives set forth in the related Offering Circular Supplement. And, as always with Gold MACS, the new floater and inverse floater securities may be exchanged for the underlying Gold Giant PC.

The capacity to exchange the new classes for the underlying Giant PC, a security that is "Good Delivery" against TBA Gold trades, gives holders of the floater and inverse floater classes a price floor not previously available. This feature should also lead to greater transparency and liquidity in floater and inverse floater markets.

Gold MACS offer more than ever
Investors in Gold MACS will still be able to exchange fixed-rate Giant PCs for IO, PO, or a variety of synthetic coupon PCs from a single strip offering Investors in Gold MACS can now also obtain a variety of floater and inverse floater pairs, along with the structures previously available Investors in Gold MACS enjoy the ability to exchange all resulting securities in proportion for the underlying Giant PC – pass-through securities that are "Good Delivery" for TBA trades Investors in Gold MACS will continue to enjoy large, liquid, syndicate led issues that, with the floater/inverse floater enhancement, will be more flexible and versatile for investors

Gold MACS offer more than ever

Investors in Gold MACS will still be able to exchange fixed-rate Giant PCs for IO, PO, or a variety of synthetic coupon PCs from a single strip offering
Investors in Gold MACS can now also obtain a variety of floater and inverse floater pairs, along with the structures previously available
Investors in Gold MACS enjoy the ability to exchange all resulting securities in proportion for the underlying Giant PC – pass-through securities that are "Good Delivery" for TBA trades
Investors in Gold MACS will continue to enjoy large, liquid, syndicate led issues that, with the floater/inverse floater enhancement, will be more flexible and versatile for investors

In summary, Freddie Mac has added floater and inverse floater classes to its successful Gold MACS program. All of the previous features and product types are still available. All of the product types may be exchanged in proper proportion for the underlying Giant PC. Owing to this enhancement, holders of floater and inverse floater securities will now enjoy greater price transparency and liquidity.

Gold MACS are distributed by a dealer or syndicate of dealers as announced from time to time by Freddie Mac. Applicable exchange rules and fees are announced with each transaction.

Thank you for viewing Freddie Mac's Gold MACS roadshow.