Freddie Mac K-deal Securitizes 5-Year Paper

MCLEAN, VA-Freddie Mac has issued its third multifamily-backed Structured Pass-Through Certificates–aka its K-Certificates–for the year. The offering, which is expected to be approximately $900 million, is backed exclusively by 5-year collateral, a tweak that the GSE tried out last year and hinted that it would try again when it had accumulated enough paper.

Freddie Mac, though, does not expect to launch another five-year offering this year, Mitchell Resnick, vice president of Freddie Mac Multifamily Loan Pricing and Securitization, tells GlobeSt.com. “The five-year market is an interesting one. It is not easy to originate five-year loans – mainly because of where the yield curve is right now. Most borrowers are understandably looking for ten-year debt so it takes a bit longer to originate the shorter-term product.”