Washington Post (08/20/08) P. D3
Investors getting in on the latest sale of Freddie Mac debt, involving $3 billion in five-year reference notes, reportedly were paid a steep interest rate. At a targeted yield of 4.172 percent--1.13 percent higher than comparable Treasurys--the notes reflected the biggest spread over benchmarks in 10 years or more. The spread for Freddie Mac's May sale of five-year notes, by contrast, was just 0.69 percent. Funding costs at the government-sponsored enterprise have climbed as rising mortgage delinquencies have triggered questions from analysts and investors as to whether the company is adequately capitalized.
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