Stripped Giant Certificates (Strips)
Freddie Mac Strips are formed from Giant PCs of Freddie Mac Gold PCs. In general, stripped mortgage-backed securities represent a mortgage pool's Interest-only (IO) and Principal-only (PO) cash flow components. Freddie Mac Strips have modifiable and combinable features that provide investors with synthetic coupon options, an effective hedging tool and flexible exchanges. Strips created from Freddie Mac Gold PCs are also known as Gold Modifiable and Combinable Securities (MACS or Gold MACS).
- Stripped Giant Certificates (Strips) Product Overview
- Calendar Based Strip Issuance
- Enhanced Gold MACS
- Payment Calculations