With the implementation of Single Security, as of June 3, 2019, Freddie Mac 45-day Giants can only be created with underlying Gold PCs issued prior to June 3rd.
Giant PCs are single class pass-through securities that enable investors to manage their portfolios more efficiently by consolidating PCs into larger Giant PCs. Freddie Mac offers two types of Giant PCs: Fixed-rate Gold Giant PCs and Adjustable-rate Mortgage (ARM) Giant PCs.
Freddie Mac Giant PCs are single-class pass-through securities that enable investors to manage their portfolios more efficiently by consolidating smaller PCs into larger Giant PCs. Introduced in 1988, Giant PCs are popular with dealers and investors because they are an efficient and profitable way to aggregate production and investment portfolios. Freddie Mac offers fixed-rate Gold Giant PCs and adjustable-rate (ARM) Giant PCs.
Fixed-rate Giant PCs are Gold Giant PCs with the corresponding Gold PC payment cycle of 45 days. Fixed-rate Gold Giant PCs pay principal and interest on the 15th of each month to the holder of record as of the close of business on the last day of the preceding month.
All ARM Giant PCs bear interest at a pass-through coupon that adjusts monthly based on the weighted average of the interest rates of the underlying PCs. The PC coupon is expressed as an exact decimal truncated to three decimal places. The mortgages underlying a specific ARM Giant PC may have different adjustment rates. ARM Giant PCs pay principal and interest on the 15th of each month to the holder of record as of the close of business on the last day of the month two months prior to payment.
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.