Financial Times FT.com

Freddie $1bn bond aims to free up capital

By Saskia Scholtes in New York

Published: May 26 2009 23:32 | Last updated: May 26 2009 23:32

Freddie Mac on Tuesday began marketing to investors the first commercial mortgage bond guaranteed by a government-sponsored mortgage agency.

The new financing tool will help Freddie preserve capital while providing greater liquidity to the mortgage market.

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