OVERVIEW Product Summary

Agency Credit Insurance Structure (ACIS®) is Freddie Mac’s insurance-based credit risk sharing vehicle. ACIS transactions are insurance policies issued by or ceded to global (re)insurance companies to cover a portion of credit risk on the STACR or standalone reference pools. These transactions provide an innovative opportunity for global (re)insurance companies to invest in the credit performance of Freddie Mac’s quality single-family mortgage loans. Unlike other (re)insurance policies, ACIS offer a multi-tranche structure that accommodates (re)insurers with varied levels of appetite for risk. Freddie Mac pays monthly premiums to (re)insurers, based on their tranche participation, in exchange for claim coverage on their portion of the reference pool.

Characteristics

  • One of the industry’s largest and most diversified reference pools
  • Can be linked to STACR reference pool or executed on a standalone reference pool
  • Cashflows and structure mimic STACR transactions
  • (Re)insurers are only required to partially collateralize their limit, driven by external ratings
  • Co-participation alongside global capital markets investors and Freddie Mac
  • 12.5-year legal maturity, with early redemption option at year 10
  • Call option(s) included in transactions provide flexibility as deal seasons
  • Multi-tranche structure allows (re)insurers to determine their desired risk level

Pricing

STACR�
Funding Period
Total Limit of Liability
Initial Limit of Liability
Total Size
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Premium

ACIS Legal Documents

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credit_securities@freddiemac.com(866) 903-2767