Bond Freddy Mac 4.125% ( US3134GX2P81 ) in USD
Issuer | Freddy Mac |
Market price | 100 % ▲ |
Country | ![]() |
ISIN code |
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Interest rate | 4.125% per year ( payment 2 times a year) |
Maturity | 30/09/2024 - Bond has expired |
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Minimal amount | 1 000 USD |
Total amount | 100 000 000 USD |
Cusip | 3134GX2P8 |
Standard & Poor's ( S&P ) rating | AA+ ( High grade - Investment-grade ) |
Moody's rating | Aaa ( Prime - Investment-grade ) |
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. This financial analysis focuses on a specific debt instrument, a bond identified by ISIN US3134GX2P81 and CUSIP 3134GX2P8. The issuer of this bond is Freddie Mac, officially the Federal Home Loan Mortgage Corporation. Established in 1970 by a congressional charter, Freddie Mac is a government-sponsored enterprise (GSE) whose core mission is to promote stability and liquidity in the U.S. housing market by purchasing mortgages from lenders and transforming them into mortgage-backed securities (MBS) for investors. Although it operates as a publicly traded company, Freddie Mac has been under the conservatorship of the Federal Housing Finance Agency (FHFA) since 2008, underscoring its systemic importance to the nation's financial infrastructure. This particular bond, denominated in USD, was structured with an original fixed interest rate of 4.125%. The total size of the issuance amounted to $100,000,000, with a minimum investment threshold set at $1,000. Interest payments were scheduled with a frequency of two times per year, typically on a semi-annual basis, reflecting standard market practice for such instruments. A pivotal aspect of this bond is its maturity date of September 30, 2024. As confirmed by the issuer, this obligation has successfully reached its maturity and was subsequently redeemed at its par value of 100% of the principal amount, ensuring a full return of capital to bondholders. Reflecting the exceptional creditworthiness of the issuer and the implicit government backing, the bond garnered robust ratings from leading credit rating agencies during its active life: Standard & Poor's (S&P) assigned a rating of AA+, while Moody's provided its highest possible rating, Aaa. These top-tier ratings highlighted the bond's very low credit risk, positioning it as a highly secure investment in the fixed-income market. |