Freddie Mac Lists Securities Transitioning from LIBOR, Together with Fallback Reference Rates
Freddie Mac (OTCQB: FMCC) announced a significant transition of over 34,000 floating-rate securities from LIBOR to the Secured Overnight Financing Rate (SOFR), effective July 1, 2023. This shift comes as the ICE Benchmark Administration prepares to cease publication of LIBOR rates. Karen Pilewski, senior director for the LIBOR transition, emphasized that this move enhances investor confidence in the seamless transition of their investments. The securities affected include Participation Certificates, Giants, Collateralized Mortgage Obligations, and Credit Risk Transfer securities. A comprehensive list detailing the CUSIP, prior index, and replacement index for each security is available on Freddie Mac's website, along with resources that provide further insight into the LIBOR transition.
- Successful transition of over 34,000 securities to SOFR enhances investor confidence.
- Provides clarity with a detailed list of securities and their replacement indices.
- None.
MCLEAN, Va., April 13, 2023 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today posted to its website a list of more than 34,000 Freddie Mac floating-rate securities transitioning from LIBOR to replacement indices based on the Secured Overnight Financing Rate (SOFR). The transition will begin on July 1, 2023, the day after ICE Benchmark Administration Limited has announced it will cease publication of a representative rate for all remaining tenors of USD LIBOR.
“Freddie Mac today moved another step closer to completing its years-long transition from LIBOR to new SOFR-based reference rates,” said Karen Pilewski, senior director and lead for Freddie Mac LIBOR transition implementation. “The assignment of a fallback reference rate to every remaining LIBOR-indexed Freddie Mac security offers market participants added confidence that their investments will transition seamlessly to the replacement index at LIBOR’s cessation.”
The securities include Freddie Mac Participation Certificates, Giants, Collateralized Mortgage Obligations, Credit Risk Transfer securities and Multifamily PCs and SPCs for which Freddie Mac is responsible for selecting the replacement index. The list provides a CUSIP, prior index and replacement index for each security.
To view the list and learn more about the LIBOR transition, please visit the Freddie Mac Reference Rates Transition webpage. The page links to the LIBOR Transition Playbook, Frequently Asked Questions and Answers about the LIBOR Transition, a table showing the Selected Replacement Index for each legacy LIBOR product, and other relevant information.
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube
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FAQ
What is the FMCC LIBOR transition announcement about?
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