In its continuing effort to shield taxpayers from potential defaults, Freddie Mac is now offering investors exposure to the credit risk of multifamily mortgages that are awaiting securitization.

The government-sponsored enterprise already offloads the majority of risk on multifamily loans that it insures via K-deals, which issue two classes of bonds, senior guaranteed and unguaranteed mezzanine and subordinate bonds. Capital markets investors who purchase the unguaranteed bonds are on the hook for early losses.

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