Structured securities

Freddie Mac priced its $284.2 million SLST Series 2025-1, comprising $262.9 million in government-backed senior certificates and $21.3 million in non-guaranteed subordinate notes, to enhance mortgage portfolio liquidity and share risk with private investors. Collateralized by 1,891 seasoned mortgages (≤150 days delinquent), the deal settles May 28, 2025. Part of its structured credit strategy, Freddie Mac has securitized $80.3 billion since 2011, aided by advisors BofA Securities and Wells Fargo. Senior tranches target low-risk investors, while subordinated notes offer higher returns. The transaction reflects ongoing efforts to optimize capital, reduce balance sheet risk, and comply with post-2008 reforms.