Freddie Mac yesterday finished regional roadshows for its forthcoming issue of $2.4 billion of Reference Remic securities. The US housing agency had been to Singapore, Taipei, Macau, Hong Kong, Tokyo, Seoul and Beijing this week to sell the securities that will price next week.
The product is a new twist on an old theme. Traditional remics real estate mortgage investment conduits are just re-packaged pass-through securities. Traditional pass-throughs see both the principal and interest on US housing debt passed through to the end investors in the bonds. Remics see these cash flows repackaged so that they meet specific investor needs in terms of duration and risk class.
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