Freddie Mac said yesterday it would draw $6.1bn of capital from the US Treasury after a $9.9bn first-quarter loss drove its net worth below zero.

The government-run mortgage financier added it expected further losses in coming quarters, but there were some early signs the housing slump could be close to a bottom.

The latest capital infusion will bring the government’s stake in Freddie Mac to $51.7bn of senior preferred stock, which pays a dividend of 10% a year.

Financial Times