Short-Term and Long-Term Debt

12 Months Ended

Dec. 31, 2020

Short-Term Debt

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


	As of December 31,
	2020				2019
	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)	$	—	—	%	$	478	1.67	%
Short-term debt of Fannie Mae	12,173		0.18		26,662		1.56

(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, reported as “Other liabilities” in our consolidated balance sheets.

Long-Term Debt

Long-term debt represents debt with an original contractual maturity of greater than one year. The following table displays our outstanding long-term debt.


	As of December 31,
	2020					2019
	Maturities	Outstanding(1)		Weighted- Average Interest Rate(2)		Maturities	Outstanding(1)		Weighted- Average Interest Rate(2)
	(Dollars in millions)
Senior fixed:
Benchmark notes and bonds	2021 - 2030	$	106,691	2.03	%	2020 - 2030	$	86,114	2.66	%
Medium-term notes(3)	2021 - 2030	48,524		0.63		2020 - 2026	32,590		1.57
Other(4)	2021 - 2038	6,701		3.90		2020 - 2038	5,254		5.01
Total senior fixed		161,916		1.69			123,958		2.47
Senior floating:
Medium-term notes(3)	2021 - 2022	100,089		0.35		2020 - 2021	9,774		1.66
Connecticut Avenue Securities(5)	2023 - 2031	14,978		4.16		2023 - 2031	21,424		5.61
Other(6)	2037	416		7.75		2020 - 2037	398		6.27
Total senior floating		115,483		0.86			31,596		4.40

Secured borrowings(7)	-	—		—		2021 - 2022	31		2.31
Total long-term debt of Fannie Mae(8)		277,399		1.34			155,585		2.86
Debt of consolidated trusts	2021 - 2060	3,646,164		1.88		2020 - 2059	3,285,139		2.78
Total long-term debt		$	3,923,563	1.85	%		$	3,440,724	2.78	%

(1)Includes the effects of fair value adjustments.

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

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

(4)Includes other long-term debt with an original contractual maturity of greater than 10 years and foreign exchange bonds.

(5)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. Represents CAS issued prior to November 2018. See “Note 2, Consolidations and Transfers of Financial Assets” for more information about our CAS structures issued beginning November 2018.

(6)Consists of structured debt instruments that are reported at fair value.

(7)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.

(8)Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments in a net discount position of $392 million and $2 million as of December 31, 2020 and 2019, 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 a foreign currency. 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 CAS securities issued prior to November 2018, which are 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.

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, 2020 and 2019, the face amount of our debt securities of Fannie Mae was $290.0 billion and $182.2 billion, respectively. As of December 31, 2020, we had zero-coupon debt with a face amount of $5.1 billion, which had an effective interest rate of 0.50%. As of December 31, 2019, we had zero-coupon debt with a face amount of $23.1 billion, which had an effective interest rate of 1.63%.

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, 2020 and 2019 included $57.5 billion and $38.5 billion, respectively, of callable debt that could be redeemed, in whole or in part, at our option on or after a specified date.

The following table displays the amount of our long-term debt as of December 31, 2020 by year of maturity for each of the years 2021 through 2025 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)
2021		$	66,631		$	92,454
2022		65,593			82,824
2023		30,946			20,814
2024		19,762			14,881
2025		39,593			21,985
Thereafter		54,874			44,441
Total long-term debt of Fannie Mae(1)		277,399			277,399
Debt of consolidated trusts(2)		3,646,164			3,646,164
Total long-term debt		$	3,923,563		$	3,923,563

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

(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.