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Freddie Mac seeks more funds from new sources

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SCMP Reporter

Freddie Mac aims to bolster the proportion of funds it borrows from capital markets outside the United States to 50 per cent from 30 per cent, according to the head of the US state-sponsored company.

'It would be more appropriate to describe this goal as an aspiration,' chairman Leland Brendsel said.

'But I think this is realistic because we see strong potential from the markets in Europe as well as in Asia.' Mr Brendsel said he could not give a schedule for this target to be achieved because the company wanted to raise non-US demand for its debt securities naturally.

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He was visiting Hong Kong as part of a three-stop Asian roadshow for the company's securities, Singapore and Beijing being the other stops.

In the 1970s and 1980s, Freddie Mac was primarily engaged in the securitisation of mortgages lent by commercial banks.

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In the past decade, the company has invested in a portfolio of mortgage-backed securities. It finances the investment by short and long-term borrowings.

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