The current offering, designated Seriesrn2013 DN2 has a reference pool of more than 145,500 residential loans,rnrepresenting an unpaid principal balance of approximately $35.3 billion.   This pool consists of a subset of 30-yearrnfixed-rate single-family mortgages acquired by Freddie Mac in the first quarterrnof 2013. </p

DN2 was priced in two classes.  The M-1 tranche was priced at the one-month LIBORrnplus a spread of 145 basis points. rnPricing for the M-2 tranche was one month LIBOR plus a spread of 425rnbasis points. The offering was oversubscribed and is scheduled to settle onrnNov. 12, 2013. Freddie Mac holds the senior risk and the first loss risk inrnreference pool, and a portion of the risk in the M-1 and M-2 classes.  </p

The M-1 class was rated Baa1 by Moody’s and BBB-(sf) by Fitch, subject tornongoing monitoring.  The M-2 class is notrnrated. Both classes have an exchangeable feature giving investors the option torneither combine pro-rata portions of the cash flows from the M-1 and M-2 tranchesrnor to strip off a portion of the interest from either one to create bonds withrndifferent margins. </p

“STACR is part of Freddie Mac’s strategy to share credit risk withrnprivate investors while also fostering an agency credit market,” saidrnDavid Lowman, executive vice president of single-family business for FreddiernMac. “With two successful STACR offerings under our belt, we are wellrnon our way to having a scalable offering with regular issuances. We are pleasedrnwith the markets’ acceptance of these bonds.”</p

Series 2013-DN2 were offered to the market by Barclays Capital as co-leadrnmanager and sole bookrunner. Morgan Stanley also served as co-lead manager.rnNomura, RBS and Wells Fargo served as co-managers.

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