Freddie Mac 8.375% Perpetual Preferred Stock

Freddie Mac 8.375% Perpetual Preferred Stock is a type of fixed-income security issued by the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. This financial asset represents a stake in Freddie Mac with a fixed dividend rate of 8.375% per annum, subject to the perpetual nature of preferred stocks, meaning it does not have a maturity date. Its primary function is to provide a steady income stream to investors through dividends, which are paid before any dividends on common stock. As a government-sponsored enterprise focused on secondary mortgage markets, Freddie Mac is pivotal in the housing finance sector, facilitating mortgage liquidity, stability, and affordability across the United States. By holding this preferred stock, investors participate indirectly in the residential mortgage market, benefiting from Freddie Mac's role in ensuring the health and efficiency of the housing finance system. The perpetual preferred stock is a critical tool for Freddie Mac in raising capital while offering investors a reliable income vehicle.