Kramer Levin Represents Investment Manager in Issuance of Multifamily Structured Credit Risk Notes

Kramer Levin represented the investment manager in connection with a $279.3 million issuance of  Multifamily Structured Credit Risk Notes (“MSCR Notes”). The MSCR Notes are unsecured and unguaranteed Freddie Mac corporate debt. They are subject to the credit risk of an identified pool of multifamily mortgage loans for which Freddie Mac provides credit enhancement for the related multifamily bonds issued by state and local housing finance agencies. The MSCR Notes are synthetic instruments whose cash flows are driven by performance of “reference obligations”, instead of actual collateral. The MSCR program is designed to transfer to private investors a portion of the credit risk on eligible multifamily mortgage loans backing certain fully guaranteed securities issued by Freddie Mac, thereby reducing U.S. taxpayers’ exposure to mortgage credit risk. The transaction closed on Feb. 12, 2025.