 Sam
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 Posted: Thu Apr 08, 2004 11:40 pm Post subject: Global Debt Facility: Means of providing US debt securities |
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Global debt facility includes a debt issuance facility through which US dollar and foreign currency debt securities are provided to investors across the globe. This facility involves clearing and settlement through a number of clearing systems.
The government sponsored agencies Fannie Mae and Freddie Mac issue unsecured subordinated or unsubordinated notes, bonds and other debt securities under the Global Debt Security.
Freddie Mac designates some of the debt securities as "Reference Securities". These are scheduled US dollar or euro denominated issues having huge principal amounts.
- The Reference Notes Securities or Reference Notes have denominations of US dollars. These are non-callable debt securities that mature after 1 to 10 years. The callable reference notes also have a period of maturity equal to 1 to 10 years.
- The Reference Bond Securities having US dollar denominations are non-callable debt securities that mature after a time period of more than 10 years. Callable Reference Bonds Securities or Reference Bonds are euro denominated. These debt securities are non-callable with periods of maturity being exceeding 10 years.
The various forms of securities issued under the Global Debt Facility are:
- US dollar denominated debt securities: Book-entry (US Federal Reserve Banks) or registered (global or definitive).
- Non–US dollar denominated debt securities: Registered (global or definitive).
Debt securities issued under the Global Debt Facility are without any kind of tax-exemption. The non-US owners of securities will have to pay Federal Income taxes until and unless they get an exemption.
The debt securities are generally offered through dealers within the United States and globally according to the described terms. |
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