Exchanging Gold PCs for UMBS or MBS

Freddie Mac will provide holders of 45-day, TBA-eligible PCs the option to exchange their eligible 45-day securities for 55-day Freddie Mac UMBS – and similarly, investors can exchange non-TBA-eligible PCs for 55-day Freddie Mac MBS. Most elements of the new 55-day security will exactly match those of the Gold PC being exchanged – most fundamentally, the cash flows of the new security will ultimately be backed by the same loans as the original PC. The exchange offer will open in May 2019, the month prior to the Single Security Initiative go-live. Freddie Mac expects to offer holders of exchange-eligible Gold PCs the ability to choose between two exchange paths:

  • The “dealer-facilitated” exchange path – Authorized exchange dealers submit exchange requests on behalf of investors through Freddie Mac’s Dealer DirectSM portal. The dealer-facilitated path will stay open for the foreseeable future.
  • The “direct-to-Freddie Mac” exchange path – Investors exchange directly with Freddie Mac using Tradeweb to facilitate the exchange booking. Investors will be able to request exchanges through their order management systems’ integration with Tradeweb or enter them into Tradeweb directly. The “direct-to-Freddie Mac” path is expected to be open for 3-5 years.

To facilitate exchanges, Freddie Mac is creating 55-day mirror securities on a one-for-one basis for all exchange-eligible 45-day PCs. Issuance of mirror securities began in August 2018 and will continue until the commencement of the exchange offer as needed. Please refer to the list of Freddie Mac exchange-eligible 45-day securities to find a list of securities that will be mirrored. Exchange concepts are described in more detail in the sections below. Additional details are also available on the Freddie Mac Exchange website.

Exchanging Giant PCs for Supers and 55-day Giant MBS

Freddie Mac will provide holders of 45-day, TBA-eligible Giant PCs the option to exchange their eligible 45-day securities for 55-day Freddie Mac Supers. Holders of non-TBA-eligible Giant PCs may exchange into 55-day Giant MBS. Most elements of the new 55-day security will exactly match those of the Giant PC being exchanged – most fundamentally, the cash flows of the new security will ultimately be backed by the same loans as the original Giant. The exchange offer will open in May 2019, the month prior to the Single Security Initiative go-live. Freddie Mac expects to offer holders of exchange-eligible Giant PCs the ability to choose between two exchange paths:

  • The “dealer-facilitated” exchange path – Authorized exchange dealers submit exchange requests on behalf of investors through Freddie Mac’s Dealer DirectSM portal. The dealer-facilitated path will stay open for the foreseeable future.
  • The “direct-to-Freddie Mac” exchange path – Investors exchange directly with Freddie Mac using Tradeweb to facilitate the exchange booking. Investors will be able to request exchanges through their order management systems’ integration with Tradeweb or enter them into Tradeweb directly. The “direct-to-Freddie Mac” path is expected to be open for 3-5 years.

To facilitate exchanges, Freddie Mac is creating 55-day mirror securities on a one-for-one basis for all exchange-eligible 45-day Giant PCs. Issuance of mirror securities began in August 2018 and will continue until the commencement of the exchange offer as needed. Please refer to the list of Freddie Mac exchange-eligible 45-day securities to find a list of securities that will be mirrored. Exchange concepts are described in more detail in the sections below. Additional details are also available on the Freddie Mac Exchange website.


This product overview is not an offer to sell or solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Information Statement and related supplements.