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Does Freddie Macs right to redeem FreddieNotes securities present any risk to investors?

April 26, 2017Freddie freddienotes investors Mac PRESENT redeem right risk securities

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Does Freddie Macs right to redeem FreddieNotes securities present any risk to investors?

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Yes. Freddie Mac may choose to redeem FreddieNotes securities when prevailing interest rates are relatively low. Following redemption, investors may not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as the interest rate on the FreddieNotes securities that were redeemed. See the Offering Circular and Offering Circular Supplement for FreddieNotes securities for further discussion of the risks involved in investing in FreddieNotes securities.