MCLEAN, Va., Jan. 14, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are multifamily mortgage-backed securities. The company expects to issue approximately $796 million in K Certificates (K-1519 Certificates), which are expected to settle on or about January 21, 2021.

The K-1519 Certificates are backed by corresponding classes issued by the FREMF 2021-K1519 Mortgage Trust (K-1519 Trust) and guaranteed by Freddie Mac. The K-1519 Trust will also issue certificates consisting of the Class X2-A, Class X2-B, Class C and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-1519 Certificates.

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.