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Short-Term Borrowings and Long-Term Debt
12 Months Ended
Dec. 31, 2013
Debt Disclosure [Abstract]  
Short-Term Borrowings and Long-Term Debt
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 December 31, 2013 and 2012.
 
As of December 31,
  
2013
 
2012
 
Outstanding
 
Weighted- Average Interest Rate(1)
 
Outstanding
 
Weighted- Average Interest Rate(1)
 
 
(Dollars in millions) 
 
Fixed-rate short-term debt:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount notes(2)
 
$
71,933

 
 
 
0.12
%
 
 
 
$
104,730

 
 
 
0.15
%
 
Foreign exchange discount notes(3)
 
362

 
 
 
1.07

 
 
 
503

 
 
 
1.61

 
Total short-term debt of Fannie Mae
 
72,295

 
 
 
0.13

 
 
 
105,233

 
 
 
0.16

 
Debt of consolidated trusts
 
2,154

 
 
 
0.09

 
 
 
3,483

 
 
 
0.15

 
Total short-term debt
 
$
74,449

 
 
 
0.13
%
 
 
 
$
108,716

 
 
 
0.16
%
 
__________
(1) 
Includes the effects of discounts, premiums and other cost basis adjustments.
(2) 
Represents unsecured general obligations with maturities ranging from overnight to 360 days from the date of issuance.
(3) 
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.
Intraday Lines of Credit
We periodically use secured 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 $20.0 billion and $15.0 billion as of December 31, 2013 and 2012, respectively. We had no borrowings outstanding from these lines of credit as of December 31, 2013 or 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 December 31, 2013 and 2012.
 
As of December 31,
 
2013
 
2012
 
Maturities
 
Outstanding
 
 
Weighted- Average Interest Rate (1)
 
Maturities
 
Outstanding
 
Weighted- Average Interest Rate (1)
 
(Dollars in millions)
Senior fixed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benchmark notes and bonds
2014 - 2030
 
$
212,234

 
 
2.45
%
 
2013 - 2030
 
 
$
251,768

 
 
2.59
%
Medium-term notes(2)
2014 - 2023
 
161,445

 
 
1.28

 
2013 - 2022
 
 
172,288

 
 
1.35

Foreign exchange notes and bonds
2021 - 2028
 
682

 
 
5.41

 
2021 - 2028
 
 
694

 
 
5.44

Other(3)(4)
2014 - 2038
 
38,444

 
 
4.99

 
2013 - 2038
 
 
40,819

 
 
4.99

Total senior fixed 
 
 
412,805

 
 
2.24

 
 
 
 
465,569

 
 
2.35

Senior floating:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Medium-term notes(2)
2014 - 2019
 
38,441

 
 
0.20

 
2013 - 2019
 
 
38,633

 
 
0.27

Other(3)(4)
2020 - 2037
 
955

 
 
5.18

 
2020 - 2037
 
 
365

 
 
8.22

Total senior floating 
 
 
39,396

 
 
0.32

 
 
 
 
38,998

 
 
0.33

Subordinated fixed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Qualifying subordinated
2014
 
1,169

 
 
5.27

 
2013 - 2014
 
 
2,522

 
 
5.00

Subordinated debentures(5)
2019
 
3,507

 
 
9.92

 
2019
 
 
3,197

 
 
9.92

Total subordinated fixed 
 
 
4,676

 
 
8.76

 
 
 
 
5,719

 
 
7.75

Secured borrowings(6)
2021 - 2022
 
262

 
 
1.86

 
2021 - 2022
 
 
345

 
 
1.87

Total long-term debt of Fannie Mae(7)
 
 
457,139

 
 
2.14

 
 
 
 
510,631

 
 
2.25

Debt of consolidated trusts(4)
2014 - 2053
 
2,702,935

 
 
3.26

 
2013 - 2052
 
 
2,570,170

 
 
3.36

Total long-term debt
 
 
$
3,160,074

 
 
3.10
%
 
 
 
 
$
3,080,801

 
 
3.18
%
__________
(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 our remaining liability resulting from the transfer of financial assets from our consolidated balance sheets that did not qualify as a sale under the accounting guidance for the transfer of financial instruments.
(7) 
Reported amounts include a net unamortized discount, fair value adjustments and other cost basis adjustments of $4.8 billion and $6.0 billion as of December 31, 2013 and 2012, respectively.
Our long-term debt includes a variety of debt types. We issue both fixed and floating-rate medium-term notes with maturities greater than one year that are issued through dealer banks. We also offer Benchmark Notes and other bonds in large, regularly-scheduled issuances that provide increased efficiency, liquidity and tradability to the market. Additionally, we have issued notes and bonds denominated in several foreign currencies and are able to issue debt in numerous other currencies. We effectively convert all foreign currency-denominated transactions into U.S. dollars through the use of foreign currency swaps for the purpose of funding our mortgage assets.
Our other long-term debt includes callable and non-callable securities, which include all long-term non-Benchmark securities, such as zero-coupon bonds, fixed rate and other long-term securities, and are generally negotiated underwritings with one or more dealers or dealer banks.
Debt of Consolidated Trusts
Debt of consolidated trusts represents the amount of Fannie Mae MBS issued from consolidated trusts and held by third-party certificateholders.
Characteristics of Debt
As of December 31, 2013 and 2012, the face amount of our debt securities of Fannie Mae was $534.3 billion and $621.8 billion, respectively. As of December 31, 2013 and 2012, we had zero-coupon debt with a face amount of $86.8 billion and $120.7 billion, respectively, which had an effective interest rate of 1.29% and 0.93%, respectively.
We issue callable debt instruments to manage the duration and prepayment risk of expected cash flows of the mortgage assets we own. Our outstanding debt as of December 31, 2013 and 2012 included $168.4 billion and $177.8 billion, respectively, of callable debt that could be redeemed in whole or in part at our option or the option of the investor any time on or after a specified date.
The following table displays the amount of our long-term debt as of December 31, 2013 by year of maturity for each of the years 2014 through 2018 and thereafter. The first column assumes that we pay off this debt at maturity or on the call date if the call has been announced, while the second column assumes that we redeem our callable debt at the next available call date.
 
Long-Term Debt by
Year of Maturity
 
Assuming Callable Debt
Redeemed at Next
Available Call Date
 
 
(Dollars in millions)
 
2014
 
$
89,844

 
 
 
$
246,234

 
2015
 
70,896

 
 
 
73,214

 
2016
 
80,015

 
 
 
48,931

 
2017
 
81,896

 
 
 
44,430

 
2018
 
52,098

 
 
 
20,813

 
Thereafter
 
82,390

 
 
 
23,517

 
Total debt of Fannie Mae(1)
 
457,139

 
 
 
457,139

 
Debt of consolidated trusts(2)
 
2,702,935

 
 
 
2,702,935

 
Total long-term debt(3)
 
$
3,160,074

 
 
 
$
3,160,074

 
__________
(1) 
Reported amount includes a net unamortized discount, fair value adjustments and other cost basis adjustments of $4.8 billion.
(2) 
Contractual maturity of debt of consolidated trusts is not a reliable indicator of expected maturity because borrowers of the underlying loans generally have the right to prepay their obligations at any time.
(3) 
Includes a portion of structured debt instruments that is reported at fair value.