FreddieMac priced an offering worth $739 million in structured agencycredit risk debt notes.
The STACR offering is its seventh in 2016.
The class M-1 tranche priced at the one-month LIBOR plus a spreadof 80 basis points; the class M-2 tranche at the one-month LIBOR plus a spreadof 130 basis points; the class M-3 tranche at the one-month LIBOR plus a spreadof 380 basis points; and the class B tranche at the one-month LIBOR plus aspread of 860 basis points.
The STACR Series 2016-DNA4 has a reference pool ofsingle-family mortgages with more than $24.8 billion in unpaid principalbalance, consisting of a subset of 30-year, fixed-rate, single-family mortgagesacquired by Freddie Mac.
Freddie Mac holds the senior loss risk in the capitalstructure and a portion of the risk in the class M-1, M-2 and M-3 tranches,along with the first loss class B tranche.
J.P. Morgan and Wells Fargo Securities will serve as co-leadmanagers and joint book runners for the offering.