Funding Strategy
Funding Sources in Three Distinct Areas:
FHLMC:
- Largest counterparty
- Highest rated counterparty
Other Broker/Dealers:
- Additional 12 repo line counterparties with borrowing capacity in excess of $6 Billion
Commercial Paper Funding:
- Special purpose vehicle developed by FBR
- Issue of commercial paper backed by repos with underlying collateral of hybrid arms
- Diversifies funding alternative
- Permanent financing of MBS securities