Freddie Mac's latest sale of risk-sharing bonds, its biggest yet, was structured in a way that will help reduce the earnings volatility that's added to concerns that the mortgage giant may again need to tap taxpayer funds.

That's because the initial version of the notes — through which it’s shifting risk to investors on more than 10% of its $1.6 trillion in mortgage guarantees — needed to be accounted for as derivatives and subject to regular valuations that affected profits, according to Mike Reynolds, a vice president of credit-risk transfer at Freddie Mac.

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