Freddie Mac Will Not Issue a Reference REMIC(R) Security in September
September 04, 2007: 08:00 AM EST
MCLEAN, Va., Sept. 4 /PRNewswire-FirstCall/ — Freddie Mac today announced it will not issue a Reference REMIC (R) security during the week of September 17, 2007. The company’s 2007 Reference Notes(R) and Reference REMIC calendar designates monthly issuance weeks that it may use to issue new Reference REMIC securities.
Freddie Mac is committed to regular and predictable issuance of Reference REMIC securities. Based on current market conditions, and in consultation with its underwriting partners, the company has concluded that market demand does not appear sufficient for Freddie Mac to issue a Reference REMIC security in September. The company intends to resume regular Reference REMIC issuance in the future, as the market returns to more orderly operations.
This announcement is not an offer to sell 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.
Freddie Mac’s press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company’s Information Statement dated March 23, 2007, and related Information Statement Supplements, which are available on the Investor Relations page of the company’s Web site at http://www.FreddieMac.com/investors .
Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters
Do you know more about this topic? How often does this happen?When was the last time ect.? Could this signify a retro-active vote of “no confidence” in the GSE’s by big capital players?
The big problem the paper is going to have regardless of the source is the industry has burned the investor’s trust that what the paper says is what the paper is.
There is a major subliminal story here. The Big Capital markets are probably not sucking up the (somewhat implied) "full faith & Credit of US Government" story line for GSE paper. They are also thrashing the "Too big to fail" theory. Looks like the world might have just changed. GSEs may have to follow the normal laws of capitalism.
There was another story in FT (see Credit Market & Liquidity crunch) that London & Euro interbank credit markets are almost completely choked up. Looks like we may be seeing a major international credibility crisis. If so, that is a big problem; If liquidity is lost, that can be replaced, but from where will you inject trust among market participants. Reminds me of the old saying “If wealth is lost, nothing is lost. If health is lost, something is lost. But, if character is lost, everything is lost.” We may be seeing case 3 rather than 1.
.
