Short-Term Borrowings and Long-Term Debt

6 Months Ended

Jun. 30, 2012

Short-Term Borrowings and Long-Term Debt

Short-Term Borrowings

The following table displays our outstanding short-term borrowings (borrowings with an original contractual maturity of one year or less) and weighted-average interest rates of these borrowings as of June 30, 2012 and December 31, 2011.



	As of
	June 30, 2012						December 31, 2011
	Outstanding			Weighted- Average Interest Rate ⁽¹⁾			Outstanding			Weighted- Average Interest Rate ⁽¹⁾
		(Dollars in millions)
Federal funds purchased and securities sold under agreements to repurchase⁽²⁾		$	153		—	%		$	—		—	%

Fixed-rate short-term debt:
Discount notes⁽³⁾		$	92,424		0.14	%		$	146,301		0.13	%
Foreign exchange discount notes⁽⁴⁾		482			1.91			371			1.88
Other⁽⁵⁾		—			—			80			0.04
Total short-term debt of Fannie Mae		92,906			0.15			146,752			0.13
Debt of consolidated trusts		3,908			0.17			4,973			0.09
Total short-term debt		$	96,814		0.15	%		$	151,725		0.13	%

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⁽¹⁾	Includes the effects of discounts, premiums, and other cost basis adjustments.


⁽²⁾	Represents agreements to repurchase securities for a specified price, with repayment generally occurring on the following day.


⁽³⁾	Represents unsecured general obligations with maturities ranging from overnight to 360 days from the date of issuance.

⁽⁴⁾

Represents foreign exchange discount notes we issue in the Euro commercial paper market with maturities ranging from 5 to 360 days which enable investors to hold short-term investments in different currencies. We do not incur foreign exchange risk on these transactions, as we simultaneously enter into foreign currency swaps that have the effect of converting debt that we issue in foreign denominated currencies into U.S. dollars.


⁽⁵⁾	Includes foreign exchange discount notes denominated in U.S. dollars.

Intraday Lines of Credit

We periodically use secured and unsecured intraday funding lines of credit provided by several large financial institutions. We post collateral which, in some circumstances, the secured party has the right to repledge to third parties. As these lines of credit are uncommitted intraday loan facilities, we may be unable to draw on them if and when needed. We had secured uncommitted lines of credit of $25.0 billion and unsecured uncommitted lines of credit of $500 million as of June 30, 2012 and December 31, 2011. We had no borrowings outstanding from these lines of credit as of June 30, 2012.

Long-Term Debt

Long-term debt represents borrowings with an original contractual maturity of greater than one year. The following table displays our outstanding long-term debt as of June 30, 2012 and December 31, 2011.



	As of
	June 30, 2012						December 31, 2011
	Maturities	Outstanding			Weighted-Average Interest Rate ⁽¹⁾		Maturities	Outstanding			Weighted-Average Interest Rate ⁽¹⁾
	(Dollars in millions)
Senior fixed:
Benchmark notes and bonds	2012 - 2030		$	267,347	2.63	%	2012 - 2030		$	277,146	2.81	%
Medium-term notes⁽²⁾	2012 - 2022		172,877		1.40		2012 - 2021		176,886		1.61
Foreign exchange notes and bonds	2021 - 2028		669		5.27		2021 - 2028		662		5.44
Other⁽³⁾⁽⁴⁾	2012 - 2040		39,848		5.27		2012 - 2040		50,912		5.29
Total senior fixed			480,741		2.41				505,606		2.64
Senior floating:
Medium-term notes⁽²⁾	2012 - 2019		77,026		0.31		2012 - 2016		71,855		0.32
Other⁽³⁾⁽⁴⁾	2020 - 2037		377		8.63		2020 - 2037		420		8.01
Total senior floating			77,403		0.34				72,275		0.35
Subordinated fixed:
Qualifying subordinated⁽⁵⁾	2012 - 2014		4,894		5.08		2012 - 2014		4,894		5.08
Subordinated debentures	2019		3,054		9.91		2019		2,917		9.91
Total subordinated fixed			7,948		6.94				7,811		6.88
Secured borrowings⁽⁶⁾	2021 - 2022		391		1.87		—		—		—
Total long-term debt of Fannie Mae⁽⁷⁾			566,483		2.19				585,692		2.42
Debt of consolidated trusts⁽⁴⁾	2012 - 2052		2,500,591		3.93		2012 - 2051		2,452,455		4.18
Total long-term debt			$3,067,074		3.61	%			$	3,038,147	3.84	%

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⁽¹⁾	Includes the effects of discounts, premiums and other cost basis adjustments.


⁽²⁾	Includes long-term debt with an original contractual maturity of greater than 1 year and up to 10 years, excluding zero-coupon debt.


⁽³⁾	Includes long-term debt that is not included in other debt categories.


⁽⁴⁾	Includes a portion of structured debt instruments that is reported at fair value.


⁽⁵⁾	Consists of subordinated debt issued with an interest deferral feature.


⁽⁶⁾	Represents remaining liability for transfer of financial assets from our condensed consolidated balance sheets that did not qualify as a sale.


⁽⁷⁾	Reported amounts include a net discount and other cost basis adjustments of $7.5 billion and $9.2 billion as of June 30, 2012 and December 31, 2011, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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