Bond Freddy Mac 5% ( US3134GXA958 ) in USD
Issuer | Freddy Mac |
Market price | 100 % ▲ |
Country | ![]() |
ISIN code |
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Interest rate | 5% per year ( payment 2 times a year) |
Maturity | 28/06/2024 - Bond has expired |
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Minimal amount | 1 000 USD |
Total amount | 37 000 000 USD |
Cusip | 3134GXA95 |
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. **Analysis of Matured Freddie Mac Bond (ISIN: US3134GXA958)** This financial article provides a detailed overview of a recently matured debt instrument issued by Freddie Mac, identified by its International Securities Identification Number (ISIN) US3134GXA958 and CUSIP code 3134GXA95. The bond, which reached its maturity date on June 28, 2024, has been fully redeemed at its market price of 100% of its par value, signifying its successful completion within the U.S. fixed-income market. The issuer, Freddie Mac, officially known as the Federal Home Loan Mortgage Corporation, is a critical government-sponsored enterprise (GSE) operating within the United States. Its core mission is to provide liquidity, stability, and affordability to the nation's housing market by purchasing mortgages from lenders and then packaging them into mortgage-backed securities (MBS) or holding them in its portfolio. This mechanism ensures a consistent flow of capital for new home purchases and refinancings, playing an integral role in supporting the U.S. economy. Due to its unique status and implicit government backing, Freddie Mac's debt obligations are widely perceived to carry very low credit risk, often considered as close substitutes for U.S. Treasury securities among institutional investors. Specific characteristics of this particular bond include its denomination in U.S. Dollars (USD) and a fixed annual interest rate, or coupon, of 5%. The bond was structured to pay interest semi-annually, reflecting a payment frequency of two times per year. The total size of this issuance amounted to 37,000,000 USD, representing a significant offering in the agency debt segment. Furthermore, the bond was accessible to a broad range of investors, with a minimum purchase size set at 1,000 USD. The credit quality of this obligation was exceptionally high, indicative of Freddie Mac's robust financial standing and its critical role in the U.S. financial system. This bond received top-tier credit ratings from leading agencies: Standard & Poor's (S&P) assigned a rating of AA+, while Moody's provided its highest possible investment-grade rating, Aaa. These ratings underscore the bond's outstanding creditworthiness and extremely low probability of default, positioning it among the safest non-sovereign debt instruments in the market. As confirmed by its status, this bond has successfully reached its maturity and has been repaid to all bondholders on June 28, 2024, demonstrating the predictable and secure nature of highly-rated fixed-income investments issued by entities like Freddie Mac upon their scheduled expiration. |