Freddie Mac's recent announcement that it would ensure that Gold PC prepayments are consistent with market norms is positive for Gold/FNMA swaps, analysts said.

One of the strategies mentioned is the immediate development of contractual incentives and penalties around sellers' prepayment experience on outstanding and new PCs. Market observers said that this implies that Freddie would probably reward sellers whose pools manifest slower-than-average prepayments while penalizing sellers whose pools are prepaying faster than the norm.

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