Short-Term and Long-Term Debt

12 Months Ended

Dec. 31, 2017

Short-Term Debt

The following table displays our outstanding short-term debt (borrowings with an original contractual maturity of one year or less) and weighted-average interest rates of these borrowings.



	As of December 31,
	2017				2016
	Outstanding		Weighted- Average Interest Rate ⁽¹⁾		Outstanding		Weighted- Average Interest Rate ⁽¹⁾
	(Dollars in millions)
Short-term debt of Fannie Mae	$	33,377	1.18	%	$	34,995	0.49	%
Debt of consolidated trusts	379		1.11		584		0.48
Total short-term debt	$	33,756	1.18	%	$	35,579	0.49	%

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

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, 2017 and 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,
	2017					2016
	Maturities	Outstanding		Weighted-Average Interest Rate⁽¹⁾		Maturities	Outstanding		Weighted-Average Interest Rate⁽¹⁾
	(Dollars in millions)
Senior fixed:
Benchmark notes and bonds	2018 - 2030	$	123,541	2.11	%	2017 - 2030	$	153,983	2.16	%
Medium-term notes⁽²⁾	2018 - 2026	75,901		1.41		2017 - 2026	82,230		1.40
Other⁽³⁾	2018 - 2038	7,421		4.84		2017 - 2038	12,800		6.74
Total senior fixed		206,863		1.95			249,013		2.14
Senior floating:
Medium-term notes⁽²⁾	2018 - 2020	8,425		1.36		2017 - 2019	21,476		0.71
Connecticut Avenue Securities⁽⁴⁾	2023 - 2030	22,527		5.18		2023 - 2029	16,511		4.77
Other⁽⁵⁾	2020 - 2037	376		6.36		2020 - 2037	346		6.75
Total senior floating		31,328		4.14			38,333		2.48
Subordinated debentures	2019	5,106		9.93		2019	4,645		9.93
Secured borrowings⁽⁶⁾	2021 - 2022	78		1.70		2021 - 2022	111		1.44
Total long-term debt of Fannie Mae⁽⁷⁾		243,375		2.40			292,102		2.31
Debt of consolidated trusts	2018 - 2057	3,052,923		2.80		2017 - 2056	2,934,635		2.57
Total long-term debt		$	3,296,298	2.77	%		$	3,226,737	2.54	%

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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 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 $752 million and $1.8 billion as of December 31, 2017 and 2016, 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, 2017 and 2016, the face amount of our debt securities of Fannie Mae was $277.5 billion and $328.9 billion, respectively. As of December 31, 2017 and 2016, we had zero-coupon debt with a face amount of $39.8 billion and $45.9 billion, respectively, which had an effective interest rate of 2.29% and 2.43%, 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, 2017 and 2016 included $72.3 billion and $77.3 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, 2017 by year of maturity for each of the years 2018 through 2022 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)
2018		$	53,932		$	100,446
2019		61,760			45,015
2020		39,712			25,202
2021		23,945			14,184
2022		8,463			7,353
Thereafter		55,563			51,175
Total debt of Fannie Mae⁽¹⁾		243,375			243,375
Debt of consolidated trusts⁽²⁾		3,052,923			3,052,923
Total long-term debt		$	3,296,298		$	3,296,298

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⁽¹⁾	Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments of $752 million.


⁽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.