Discount Notes
Discount notes are unsecured general corporate obligations that are issued
at a discount and mature at par. Freddie Mac issues most short-term debt
as discount notes.
- Maturities range from overnight through one year
- May be acquired in denominations as small as $1,000;
additional amounts may be acquired in increments of $1,000
- Are issued and maintained in book entry form through
the Federal Reserve Bank of New York
- Give institutional and retail investors choices in the investment
date, maturity date and size of their short-term investments
- Offer tailored, flexible investment opportunities for money
managers seeking to invest discrete U.S. dollar amounts for precise,
short time periods.
Issuance Activity
Freddie Mac and the U.S. Dollar Discount Note Market
Our discount note issuance establishes us as one of the largest non-government
providers of short-term debt in the world. The amounts and variety of
discount notes sold in recent years testify to our ability to match investors’
short-term investment needs and maturity preferences with our overall
funding requirements.
Pricing conventions for discount notes are the same as those used for
T-bills, and Freddie Mac’s discount notes offer superior primary
market availability. Our discount notes are offered continually to investors,
with 24-hour postings available through Freddie Mac's dealer selling group.
Active secondary market trading provides additional liquidity for these
investments. The size of the program, coupled with the diversity of the
investor base and strong dealer commitments, provide superior secondary
market liquidity for Freddie Mac’s discount notes.
Disclaimer
No Warranties; Limitation of Liability
Although Freddie Mac attempts to provide useful information, Freddie
Mac does not guarantee that the information posted on or linked to any
Freddie Mac Web site is accurate, current or suitable for any particular
purpose. Freddie Mac assumes no obligation to update or continue to post
or link to the information. Freddie Mac does not guarantee that access
to any Freddie Mac Web site will be uninterrupted, or that a Freddie Mac
Web site cannot be tampered with by third parties. While Freddie Mac has
implemented security measures designed to protect most information sent
to the Freddie Mac Web sites, Freddie Mac does not guarantee that information
sent to a Freddie Mac Web site will not be obtained, reviewed, disclosed
or tampered with by third parties.
No Offer or Solicitation of Securities. Freddie
Mac operates several Web sites, any one of which may include information
related to, or referenced in the offering
documentation for, certain Freddie Mac securities, including offering
circulars and related supplements and agreements. Freddie Mac securities
may not be eligible for offer or sale in certain jurisdictions or to certain
persons. The Information is provided for your general information only,
is current only as of its specified date and does not constitute an offer
to sell or a solicitation of an offer to buy securities. All Information
regarding or relating to Freddie Mac securities is qualified in its entirety
by the relevant offering circular and any related supplements. Investors
should review the relevant offering circular and any related supplements
before making a decision with respect to the purchase or sale of any security.
In addition, before purchasing any security, please consult your legal
and financial advisors for information about and analysis of the security,
its risks and its suitability as an investment in your particular circumstances. |
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