McLEAN, VA-Freddie Mac has just gone to market with its last K-Certificate of the year, a plain vanilla offering worth approximately $1.1 billion. It was a fitting cap to 2012, which, in fact, saw several unique structures introduced by the GSE's multifamily finance operation: it rolled out floating-rating K-Certificates, fully-wrapped securities and five-year paper.
The market can expect more of the same mix of new and standard deals in 2013, Mitch Resnick, vice president of Multifamily Capital Markets for Freddie Mac, tells GlobeSt.com. "We hope to continue with those transactions while maintaining the issuance of consistent paper," Resnick says. For the most part, however, the GSE has focused on coming to market on a steady basis with its standard K-Certificates, such as the one this week. The securities are expected to price the week of Dec. 3, and settle on or about Dec. 21, 2012.
It is Freddie Mac's seventeenth K Certificate offering this year and is backed by 76 recently-originated multifamily mortgages that are guaranteed by the GSE. By the end of the year the GSE will have brought to market over $21 billion in K-Deals, through 17 different offerings. That is an approximately 50% increase over its 2011 issuance.
Next year should be a strong one as well, Resnick says, although he declines to provide growth projectons. So far, through Q3, Freddie Mac has posted $19.2 billion in mortgage purchases. For all of 2011, it completed $20.3 billion in mortgage purchases.
"The loans being purchased right now are on indicator," he says, noting that the majority is in the 10-year range. "That is a reflection that borrowers are looking for longer-term debt, which makes sense given where interest rates are."
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