The underwriting characteristics on the latest risk-sharing transaction from Freddie Mac have loosened somewhat compared with previous Structured Agency Credit Risk deals, prompting default expectations well above those projected for recently issued jumbo MBS. However, the government-sponsored enterprises’ risk-sharing transactions are still seen as good investments and investor demand has been strong. Freddie is preparing to sell a total of $966.0 million in three tranches to investors based on a reference pool with an unpaid principal balance of $28.15 billion. The deal priced this week. Freddie said more than 75 investors bought in and the deal was oversubscribed. The top tranche on STACR 2014-DN2 available for sale to investors is set...