Introducing Multifamily Giant PCs
I’m pleased to announce that we have expanded our capabilities by adding Multifamily Giant Participation Certificates (Multifamily Giant PCs) to our securitization platform. With the increasing growth of our Multi PC® issuances, Giant PCs will offer an additional re-securitization capability so investors can efficiently and economically manage their portfolios.
Multifamily Giant PCs are fully guaranteed single-class pass-through securities backed by existing Multi PCs and/or Multifamily Giant PCs. The program enables investors to create a larger security with desired features, such as size, geographic concentration, coupon and price, by consolidating a pool of Multi PCs and/or Multifamily Giant PCs into a larger Giant PC while supporting the liquidity of Multi PCs both at new issuance and in the secondary market. Since the Giant PCs maintain the single-class pass-through structure, all the cash flow from the underlying securities will be passed to the Giant PC holders. Beginning July 1, we initially will offer two types of Multifamily Giant PCs: taxable fixed-rate and tax-exempt Giant PCs.
In addition, Multifamily Giant PCs will increase opportunities for impact offerings such as Freddie Mac’s mission-driven Social Bonds. Aside from providing investors with the flexibility of consolidating pools of Multi PCs and/or Giant PCs to better manage their portfolio, Giant PCs are a great alternative for investors who prefer diversified pools and allow those who cannot buy single-loan securities to participate.
With the addition of Giant PCs to our suite of offerings, investors have increased flexibility to manage their portfolio strategies by creating a pool that meets their needs at minimum expense.
This offering is another way we are supporting our mission to provide liquidity to the multifamily market.
For more information, please contact [email protected].