Freddie Mac, the U.S.´s second highest mortgage and financing giant, is trying to pump up its financing.  To date they have lost more then $ 2 billion in the 3^rd quarter, due to missed home mortgage payments, etc. At the moment there is a high demand for the company’s stock by investors, which Freddie Mac is taking advantage of by pricing its $6 billion dollar special stock at $25 per share.  These 240 million shares of special stock will not be made convertible to common stock. However, on Tuesday they did say that a small amount would be made convertible, due to converting stock lowers the share value and can hurt stock price.

The shares of special or preferred stock will be put at a fixed dividend rate of 8.375% until Dec 31, 2012. , at that date Freddie Mac will have the right to redeem or recuperate part or all of said shares.

In response to previous rumors by investors as to the amount of damage the company has suffered, Freddie Mac says it was deeply inflated and that according to their CEO and chairman Richard Syron, the main reason for the share price change is ¨to enable Freddie Mac to continue fulfilling our important housing mission through the current market environment, and better position us to effectively manage the company going forward.¨