Freddie's issuance drops in August, repurchases zoom to $4.17 billion

By Angela McDaniels

Tacoma, Wash., Sept. 23 - Freddie Mac issued fewer debt securities in August while dramatically ramping up its repurchases, according to the agency's summary for the month.

The agency issued $23.43 billion of debt securities in August. This is a decline of 9.01% compared to July, when the agency issued $25.75 billion, and a decline of 6.3% compared to August 2010, when it issued $25.01 billion.

The agency repurchased $4.17 billion of debt securities in August and none in July or August 2010.

The latest repurchase activity nearly doubled the amount of repurchases made in 2011 to $8.39 billion. In 2010 through August, the agency repurchased $5.38 billion of debt securities.

The agency said that $26.85 billion of debt securities matured or were redeemed during August. The amount in July was $18.94 billion.

The total amount of debt securities outstanding at the end of August was $505.27 billion, down from $512.85 billion a month earlier and down from $556.68 billion in August 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 August was $692.98 billion, compared with $694.27 billion at the end of July and $762.24 billion at the end of August 2010.

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