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Article: Freddie Mac Flexes Muscles in Public Investment Ring
- Article from:
- The Washington Post
- Article date:
- November 7, 1988
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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There's a new kid on the block. His name is Freddie Mac. And he
is making a grand entrance into the public company arena with 60
million shares that are trading at about $50 each-giving Freddie an
instant market value of almost $3 billion.
Freddie Mac, from its offices in Reston, buys home mortgages
from lenders, packages them into securities and sells them to
investors. Freddie is one of the major players in the secondary
mortgage market-indeed, its chief competitor is Fannie Mae, which has
been in business for 50 years.
The stock of Fannie Mae-the Federal National Mortgage
Association-has been popular for many years. Freddie Mac's newly
listed public shares also are expected to ...