XML 97 R15.htm IDEA: XBRL DOCUMENT v3.22.0.1
Short-Term and Long-Term Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Short-Term and Long-Term Debt Short-Term and Long-Term Debt
In January 2021, we began applying fair value hedge accounting to certain debt issuances. The objective of our fair value hedges is to reduce GAAP earnings volatility related to changes in benchmark interest rates. See “Note 1, Summary of Significant Accounting Policies” and “Note 8, Derivative Instruments” for additional information on our fair value hedge accounting policy and related disclosures.
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,
20212020
Outstanding
Weighted- Average Interest Rate(1)
Outstanding
Weighted- Average Interest Rate(1)
(Dollars in millions)
Short-term debt of Fannie Mae$2,795 0.03 %$12,173 0.18 %
(1)Includes the effects of discounts, premiums and other cost basis adjustments.
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,
20212020
Maturities
Outstanding(1)
Weighted- Average Interest Rate(2)
Maturities
Outstanding(1)
Weighted- Average Interest Rate(2)
(Dollars in millions)
Senior fixed:
Benchmark notes and bonds2022 - 2030$89,618 2.13 %2021 - 2030$106,691 2.03 %
Medium-term notes(3)
2022 - 203138,312 0.60 2021 - 203048,524 0.63 
Other(4)
2023 - 20387,045 3.73 2021 - 20386,701 3.90 
Total senior fixed
134,975 1.78 161,916 1.69 
Senior floating:
Medium-term notes(3)
202251,583 0.32 2021 - 2022100,089 0.35 
Connecticut Avenue Securities(5)
2023 - 203111,166 4.30 2023 - 203114,978 4.16 
Other(6)
2037373 7.17 2037416 7.75 
Total senior floating
63,122 1.05 115,483 0.86 
Total long-term debt of Fannie Mae(7)
198,097 1.55 277,399 1.34 
Debt of consolidated trusts2022 - 20613,957,299 1.89 2021 - 20603,646,164 1.88 
Total long-term debt$4,155,396 1.88 %$3,923,563 1.85 %
(1)Outstanding debt balance consists of the unpaid principal balance, premiums and discounts, fair value adjustments, hedge-related basis adjustments, and other cost basis adjustments.
(2)Excludes the effects of fair value adjustments and hedge-related 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)Consists of CAS debt issued prior to November 2018, a portion of which is reported at fair value. 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)Includes unamortized discounts and premiums, fair value adjustments, hedge-related cost basis adjustments, and other cost basis adjustments in a net discount position of $1.6 billion and $392 million as of December 31, 2021 and 2020, 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 historically issued notes and bonds denominated in a foreign currency. We effectively convert all outstanding 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, 2021 and 2020, the face amount of our debt securities of Fannie Mae was $202.5 billion and $290.0 billion, respectively. As of December 31, 2021, we had zero-coupon debt with a face amount of $3.2 billion, which had an effective interest rate of 0.66%. 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%.
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, 2021 and 2020 included $47.0 billion and $57.5 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, 2021 by year of maturity for each of the years 2022 through 2026 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)
2022$65,617 $100,564 
202323,255 20,856 
202418,817 14,169 
202538,141 21,614 
20269,598 7,195 
Thereafter42,669 33,699 
Total long-term debt of Fannie Mae(1)
198,097 198,097 
Debt of consolidated trusts(2)
3,957,299 3,957,299 
Total long-term debt$4,155,396 $4,155,396 
(1)    Includes unamortized discounts and premiums, fair value adjustments, hedge-related cost basis adjustments, and other cost basis 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.