Freddie Mac says its mortgage-related investments portfolio, also known as the company's retained portfolio, will form Giant Mortgage Participation Certificates (Giant PCs) from its holdings of Mortgage Participation Certificates (PCs).
Giant PCs, which the company first began issuing in 1988, are single-class pass-through securities created by consolidating Freddie Mac PCs into larger Giant PCs. Traditionally, Giant PCs have been formed by third parties.
Now, by also forming Giant PCs from PCs in the company's retained portfolio, Freddie Mac says it can simplify its internal administration of PC securities and ultimately help lower the company's management costs.
SOURCE: Freddie Mac