In a relatively new development in the agency sector, Freddie Mac has come to market with a CMO backed by 7/1 Agency hybrids. Street analysts say that although using hybrid ARM collateral for CMOs is common in the non-agency arena, this may be the first agency hybrid deal.

Aside from this, through structural innovation, the transaction was also geared towards ABS investors, as well as targeting traditional ARM investors.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.