An introduction to Freddie K

Freddie Mac Multifamily K-deals (Freddie K) is one of the major agency CMBS products, with $321 billion outstanding balance as of December 2021. The underlying loans are typically 10-year fixed rate or floating rate loans, with a 30-year amortization period, backed by multifamily properties.

Yield Book

Fixed rate loans usually have a strong call protection and muted prepayment activities, while floating rate loans have limited prepayment protection and higher prepayment speeds. Freddie K deals include senior tranches guaranteed by Freddie Mac and unguaranteed subordinate tranches, which are subject to credit risk.

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