Freddie Mac's issuance declines in May to lowest point since November

By Angela McDaniels

Tacoma, Wash., June 24 - Freddie Mac's issuance of debt securities declined for the second month in a row, falling 12.7% to $14.74 billion in May from $16.88 million in April, according to the agency's summary for the month.

May's issuance represents a 43.1% decline from a year earlier, when the agency issued $25.91 million of debt securities.

The amount of debt securities issued in May is the least amount of any month over the past 13 months except for November 2010, when the agency issued $11.84 billion. Issuance over this period has averaged $24.03 billion per month.

The agency did not repurchase any debt securities in May, compared with $350 million in April. Five months into the year, the agency's total amount repurchased, $3.29 billion, is close to half of the amount repurchased in the full year 2010: $6.93 billion.

The agency said that $16.49 billion of debt securities matured or were redeemed during May. The amount in April was $38.96 billion.

The total amount of debt securities outstanding at the end of May was $508.16 billion, down from $509.98 billion a month earlier and $585.87 billion in May 2010.

All of the debt securities referenced above have a term of more than one year.

When debt securities with a term of one year or less are added, the total amount of debt securities outstanding at the end of May was $698.86 billion, compared with $700.65 billion at the end of April and $795.66 billion at the end of May 2010.

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