Market participants have highly anticipated the May 7 go-live date for the Freddie Gold PC to Mirror UMBS exchange. The live exchange of eligible legacy Freddie Gold 45-day securities into 55-day Freddie Mirror securities is a crucial step in advance of the upcoming launch of the combined Freddie/Fannie UMBS TBA on June 3. The June 3 go-live date for UMBS TBA will be another key milestone, as the TBA market is where investors access the vast majority of the available liquidity in the agency MBS market.

IHS Markit has been monitoring exchange activity. Freddie Mac has successfully exchanged $563.9mm in unpaid balance prior to the May 17 settlement for testing purposes:

**Data provided by Freddie Mac

As of May 16 at 12:00pm noon, there is currently approximately $22.24bn in current unpaid balance of exchange-eligible Freddie Gold PCs scheduled for settlement into Mirror securities on May 17.

IHS Markit provides pricing on both legacy Gold PCs and the new Mirror UMBS through our Fixed Income Pricing service. Additionally, the May 2019 release update of Price Viewer will also display exchange activity that a Gold PC may experience.

Related Reading

• UMBS TBA Trading Begins
• Change is Coming to the MBS Market

Posted 16 May 2019 by Tom Marecki, Associate Director, Bond Pricing, Securitized Products, S&P Global

S&P Global provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.