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Short-Term Borrowings and Long-Term Debt
12 Months Ended
Dec. 31, 2016
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,
  
2016
 
2015
 
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)
$

 
%
 
$
62

 
%
 
 
 
 
 
 
 
 
Short-term debt of Fannie Mae
$
34,995

 
0.49
%
 
$
71,007

 
0.26
%
Debt of consolidated trusts
584

 
0.48

 
943

 
0.19

Total short-term debt
$
35,579

 
0.49
%
 
$
71,950

 
0.26
%
__________
(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.
Intraday Line of Credit
We use a secured intraday funding line of credit provided by a large financial institution. We post collateral which, in some circumstances, the secured party has the right to repledge to third parties. As this line of credit is an uncommitted intraday loan facility, we may be unable to draw on it if and when needed. The line of credit under this facility was $15.0 billion as of December 31, 2016 and 2015. We had no borrowings outstanding under this line of credit as of December 31, 2016.
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,
 
2016
 
2015
 
Maturities
 
Outstanding
 
Weighted- Average Interest Rate(1)
 
Maturities
 
Outstanding
 
Weighted- Average Interest Rate(1)
 
(Dollars in millions)
Senior fixed:
 
 
 
 
 
 
 
 
 
 
 
Benchmark notes and bonds
2017 - 2030
 
$
153,983

 
2.16
%
 
2016 - 2030
 
$
154,057

 
2.49
%
Medium-term notes(2)
2017 - 2026
 
82,230

 
1.40

 
2016 - 2025
 
96,997

 
1.53

Other(3)
2017 - 2038
 
12,800

 
6.74

 
2016 - 2038
 
27,772

 
4.88

Total senior fixed 
 
 
249,013

 
2.14

 
 
 
278,826

 
2.39

Senior floating:
 
 
 
 
 
 
 
 
 
 
 
Medium-term notes(2)
2017 - 2019
 
21,476

 
0.71

 
2016 - 2019
 
20,791

 
0.27

Connecticut Avenue Securities(4)
2023 - 2029
 
16,511

 
4.77

 
2023 - 2028
 
10,764

 
3.84

Other(5)
2020 - 2037
 
346

 
6.75

 
2020 - 2037
 
368

 
10.46

Total senior floating 
 
 
38,333

 
2.48

 
 
 
31,923

 
1.58

Subordinated debentures
2019
 
4,645

 
9.93

 
2019
 
4,227

 
9.93

Secured borrowings(6)
2021 - 2022
 
111

 
1.44

 
2021 - 2022
 
152

 
1.47

Total long-term debt of Fannie Mae(7)
 
 
292,102

 
2.31

 
 
 
315,128

 
2.41

Debt of consolidated trusts
2017 - 2056
 
2,934,635

 
2.57

 
2016 - 2054
 
2,810,593

 
2.94

Total long-term debt
 
 
$
3,226,737

 
2.54
%
 
 
 
$
3,125,721

 
2.88
%
__________
(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 other long-term debt with an original contractual maturity of greater than 10 years and foreign exchange bonds.
(4) 
Credit risk-sharing securities that transfer a portion of the credit risk on specified pools of single-family mortgage loans to the investors in these securities, a portion of which is reported at fair value.
(5) 
Consists of structured debt instruments that are reported at fair value.
(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) 
Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments of $1.8 billion and $3.2 billion as of December 31, 2016 and 2015, respectively.
Our long-term debt includes a variety of debt types. We issue fixed and floating-rate medium-term notes with maturities greater than one year that are issued through dealer banks. We also offer Benchmark Notes in 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. 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 long-term debt also includes Connecticut Avenue Securities (“CAS”), which are credit risk-sharing securities that transfer a portion of the credit risk on specified pools of mortgage loans to investors in these securities.
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.
Characteristics of Debt
As of December 31, 2016 and 2015, the face amount of our debt securities of Fannie Mae was $328.9 billion and $389.4 billion, respectively. As of December 31, 2016 and 2015, we had zero-coupon debt with a face amount of $45.9 billion and $82.1 billion, respectively, which had an effective interest rate of 2.43% and 1.26%, 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, 2016 and 2015 included $77.3 billion and $96.2 billion, respectively, of callable debt that could be redeemed in whole or in part at our option any time on or after a specified date.
The following table displays the amount of our long-term debt as of December 31, 2016 by year of maturity for each of the years 2017 through 2021 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)
2017
 
$
68,016

 
 
 
$
135,025

 
2018
 
55,086

 
 
 
43,451

 
2019
 
63,948

 
 
 
38,348

 
2020
 
29,414

 
 
 
16,734

 
2021
 
24,745

 
 
 
13,357

 
Thereafter
 
50,893

 
 
 
45,187

 
Total debt of Fannie Mae(1)
 
292,102

 
 
 
292,102

 
Debt of consolidated trusts(2)
 
2,934,635

 
 
 
2,934,635

 
Total long-term debt
 
$
3,226,737

 
 
 
$
3,226,737

 
__________
(1) 
Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments of $1.8 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.