In Brief: Freddie Launches Record $5 Billion Remic Issue

Freddie Mac announced the largest real estate mortgage investment conduit deal ever, totaling more than $5 billion.

The Remic series was backed by nearly $2.7 billion of 6.5% Freddie Mac pass-through securities, $1.9 billion of 7% pass-throughs, $225 million of 6% pass-throughs, and $190 million of 7.5% pass-throughs.

The issue, announced Tuesday, broke the record that Fannie Mae set in April with a $4 billion issue.

Salomon Smith Barney was the underwriter for the Freddie Mac deal, which will settle May 29. The investment banking unit said the deal underscored the depth of interest in structured issues and the integral role of collateralized mortgage obligations in the mortgage market.

Salomon Smith Barney has underwritten $15.5 billion of Remics backed by securities of government-sponsored agencies this year, as well as $7.5 billion in nonagency Remics.

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