Freddie Mac is bringing back risk-sharing bonds after dropping the product 15 years ago. Structured Agency Credit Risk securities will allow private capital markets to purchase the first-loss piece of some government-guaranteed mortgage-backed securities from the government-sponsored enterprise. "This new product from Freddie Mac gives this investor base access to not just a new type of nonagency RMBS credit, but to residential credit, period," said Bryan Whalen of asset manager TCW. "If the GSEs are dedicated to this program and become consistent issuers, it can grow into a relatively liquid credit opportunity."

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