Bond Freddy Mac 0% ( US3129257A26 ) in USD

Issuer	Freddy Mac
Market price	100 % ⇌
Country	United States
ISIN code	US3129257A26 ( in USD )
Interest rate	0%
Maturity	07/10/2032
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Minimal amount	1 000 USD
Total amount	215 000 000 USD
Cusip	3129257A2
Detailed description	Freddie Mac is a U.S. government-sponsored enterprise (GSE) that buys mortgages from lenders, packages them into securities, and sells them to investors, thus providing liquidity to the mortgage market. ### Analysis of Freddie Mac Zero-Coupon Obligation Maturing October 2032 This report provides a detailed examination of a distinctive debt instrument issued by the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. Identified by its ISIN code US3129257A26 and CUSIP code 3129257A2, this bond represents a notable component within the U.S. fixed-income market. Freddie Mac is a critical government-sponsored enterprise (GSE) in the United States, established by Congress in 1970 to create a continuous flow of funds to mortgage lenders. Its core mission involves purchasing mortgages from banks and other financial institutions, packaging these into mortgage-backed securities, and selling them to investors, thereby providing liquidity and stability to the housing market. While not enjoying an explicit full faith and credit guarantee from the U.S. government, Freddie Mac has operated under conservatorship since 2008, receiving significant federal support, which generally underpins investor confidence in its debt obligations given its systemic importance to the nation's housing finance system. This particular bond, issued in the United States and denominated in USD, stands out due to its unique characteristics, primarily its 0% interest rate. This designation classifies it as a zero-coupon bond, an instrument that does not pay periodic interest to bondholders throughout its life. Instead, investors typically purchase such bonds at a discount to their face value, with the entire return realized at maturity when the bond is redeemed at its par value. For this specific obligation, the current market price is listed at 100% of its face value, indicating it is trading at par. This implies that, when purchased at this price, the bond's yield to maturity is effectively zero, making it less of an income-generating asset and more of a capital preservation vehicle under certain market conditions. The bond is set to mature on October 7, 2032, offering a long-term investment horizon. The total size of this particular issuance amounts to $215,000,000, with a minimum purchase size accessible at $1,000. It is important to note that despite the inclusion of a 'payment frequency' field, typically associated with coupon-bearing instruments, this characteristic does not apply to interest distributions for this zero-coupon bond, with the principal repayment being the sole financial event at maturity.