Repurchase Operation Details: €Reference Notes® Securities
Freddie Mac conducts periodic repurchases of outstanding €Reference Notes® securities as the continued development of this asset class merits the implementation of a full-scale liability management strategy. The €Reference Notes securities repurchase operations complement Freddie Mac’s Reference Notes® securities periodic repurchase operations. Freddie Mac conducts its periodic repurchase operations via the Internet with designated dealer group members.
Transparent operations. Freddie Mac provides overnight advance public notice of €Reference Notes securities repurchases. In exceptional circumstances, we may conduct periodic repurchase operations with one-hour notice. Announcements will include target issues, the submission deadline for offers, the maximum purchase amount and settlement date. Freddie Mac announces periodic repurchase operations via designated dealers, our website, and all major newswires.
Periodic repurchase operations may target several issues at the same time, and dealers may submit several offers per issue. Participating dealers submit offers, expressed in yield in increments of one-tenth of a basis point, via the Internet. After the offering submission deadline, Freddie Mac considers all offerings together and accepts those offerings which best meet repurchase operation objectives. Freddie Mac expects to provide an automated confirmation of trade to participating dealers as soon as possible following completion of the repurchase operation. Within 15 minutes following the offering submission deadline, Freddie Mac discloses, via its website and major newswires, the amount of each issue repurchased and the overall offer-to-cover ratio.
Liquid Yield Curve. In order to maintain a liquid €Reference Notes securities yield curve Freddie Mac will focus the periodic repurchase operations on off-the-run €Reference Notes securities. Freddie Mac will maintain an outstanding balance of at least $3 billion for €Reference Notes securities.
Predictable timetable. Freddie Mac expects to conduct €Reference Notes securities repurchase operations from time to time depending on market conditions, provide overnight advance notice, and post results within 15 minutes after the offering submission deadline. Any departure from this timetable should be rare and only in exceptional circumstances. Freddie Mac's website displays final issue size, repurchase activity and current outstanding supply, minimum outstanding size, and remaining amounts eligible for repurchases. Information services (such as Bloomberg) are updated to reflect any changes in amounts outstanding of €Reference Notes securities. Repurchased securities are permanently retired.
Freddie Mac will not repurchase €Reference Notes securities of similar maturities during the period beginning one week prior to an announced issuance window through the settlement date. Existing €Reference Notes securities will be deemed to have a similar maturity if their maturity differs by 18 months or less from the maturity of the €Reference Notes securities scheduled to be issued.
Settlement of all €Reference Notes securities repurchases will be via the Euroclear system on the third business day after the trade date ("T+3").