Freddie Mac July 2025 Mortgage Volume Report Released

Freddie Mac has published its July 2025 Monthly Volume Summary, highlighting mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities, and other investments. The summary provides an overview of Freddie Mac's efforts to promote liquidity, stability, and affordability in the housing market.

New York Mortgage Trust, Inc. has announced the issuance of an additional $25.0 million in senior notes, increasing its aggregate outstanding to $115.0 million. The notes, which bear an interest rate of 9.875% payable quarterly beginning October 1, 2025, and maturing on October 1, 2030, are part of a series originally issued on July 8, 2025. The net proceeds from this issuance are expected to be approximately $24.8 million and will be used for general corporate purposes, including the acquisition of targeted mortgage- and credit-related assets.

The notes are senior unsecured and listed on Nasdaq under the symbol NYMTH. They will be effectively subordinated to secured indebtedness and structurally subordinated to the liabilities of subsidiaries. The indenture contains limited covenants and no financial covenants. This issuance provides New York Mortgage Trust, Inc. with near-term liquidity to pursue mortgage-related investments, potentially supporting its efforts to promote liquidity and stability in the housing market.

However, the issuance also carries certain risks. The high coupon rate of 9.875% reflects the credit risk associated with the notes and may attract yield-seeking institutional investors. Additionally, the notes are effectively subordinated to significant secured financings, increasing the risk for noteholders. The lack of financial covenants in the indenture allows for unlimited additional secured indebtedness, further increasing the default risk for creditors.

The issuance of these notes is part of a broader trend in the mortgage-backed securities market, where issuers are seeking to raise capital to fund targeted acquisitions and investments. As Freddie Mac continues to promote liquidity, stability, and affordability in the housing market, such issuances will likely remain a key component of their strategy.

References:
[1] https://www.stocktitan.net/sec-filings/NYMT/424b5-new-york-mortgage-trust-inc-prospectus-supplement-debt-securiti-631587b5f61b.html