--Loss Blamed on Derivatives-Hedging Mismatch
WASHINGTON (MNI) - The following are excerpts of Freddie Mac's first
quarter financial results, published Tuesday:
First Quarter 2016 Results
Results Dominated by Negative Market-Related Items of $2.0 Billion,
Offsetting Positive Business Results
- $1.4 billion (after-tax) estimated fair value loss driven by measurement
differences between the company's derivatives, which are measured at fair value,
and certain hedged assets and liabilities, which are not.
- $0.6 billion (after-tax) estimated fair value loss due to the impact of
spread widening on certain mortgage loans and mortgage-related securities
measured at fair value.
- $3.4 billion of net interest income of which approximately 45 percent was