Freddie Mac has chosen financial institution U.S. Bancorp's (NYSE:USB) commercial branch, U.S. Bank, to serve as its global agent on a new $500 million unsecured bond offering.

Known as Freddie Mac's Structured Agency Credit Risk, or STACR, the new offering of debt notes allows private investors to buy securities that are associated with a $22.5 billion reference pool of Freddie Mac-owned residential mortgages. According to U.S Bancorp, this is the first step in the Federal Housing Finance Agency's "strategic plan to create a vehicle for private investors to participate in the default risk of the loans held by Government Sponsored Enterprises, like Freddie Mac."

To help Freddie Mac meet the demands of its new note offering, as well as ease the process for private investors, U.S. Bank created a customized structure for reporting, and will also act as paying agent and calculating agent.

Kevin Palmer, Freddie Mac's vice president of costing and portfolio management, was quoted in the U.S. Bancorp press release as saying the bank is a "valuable business partner to Freddie Mac who has shown the expertise to develop the type of customized solutions required for our first STACR transaction."