Fannie Mae 2006 Annual Report Download - page 279

Long-term Debt
Long-term debt represents borrowings with an original contractual maturity of greater than one year. The
following table displays our long-term debt as of December 31, 2006 and 2005.
Maturities Outstanding
Weighted
Average
Interest
Rate
(1)
Maturities Outstanding
Weighted
Average
Interest
Rate
(1)
2006 2005
As of December 31,
(Dollars in millions)
Senior fixed:
Benchmark notes and bonds . . . . . . . 2007-2030 $277,453 4.98% 2006-2030 $288,515 4.69%
Medium-term notes . . . . . . . . . . . . . 2007-2016 239,033 4.75 2006-2015 207,445 3.92
Foreign exchange notes and bonds . . . 2007-2028 4,340 3.88 2006-2028 4,236 3.73
Other long-term debt . . . . . . . . . . . . 2007-2038 55,273 6.05 2006-2038 46,320 5.99
Total senior fixed . . . . . . . . . . . . . 576,099 4.98 546,516 4.50
Senior floating medium-term notes . . . . 2007-2016 5,522 5.06 2006-2010 23,257 4.34
Subordinated fixed:
Medium-term notes . . . . . . . . . . . . . 2007-2011 5,500 5.38 2006-2011 6,994 5.44
Other subordinated debt . . . . . . . . . . 2012-2019 7,352 6.30 2012-2019 7,250 6.25
Total subordinated fixed . . . . . . . . 12,852 5.91 14,244 5.85
Debt from consolidations . . . . . . . . . . . 2007-2039 6,763 5.98 2006-2039 6,807 5.85
Total long-term debt
(2)
. . . . . . . . . . . $601,236 5.01% $590,824 4.54%
(1)
Includes discounts, premiums and other cost basis adjustments.
(2)
Reported amounts include a net premium and cost basis adjustments of $11.9 billion and $10.7 billion as of December 31,
2006 and 2005, respectively.
Our long-term debt includes a variety of debt types. We issue both fixed and floating medium-term notes,
which range in maturity from one to ten years and are issued through dealer banks. We also offer both senior
and subordinated benchmark notes and bonds in large, regularly-scheduled issuances that provide increased
efficiency, liquidity and tradability to the market. Our outstanding subordinated benchmark debt, net of
discounts, premiums and other cost basis adjustments, was $12.9 billion and $14.2 billion for the years ended
December 31, 2006 and 2005, respectively. Additionally, we have issued notes and bonds denominated in
several foreign currencies and are prepared to issue debt in numerous other currencies. All foreign currency-
denominated transactions are swapped back 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-coupons, fixed and other long-term securities, and are generally negotiated
underwritings with one or more dealers or dealer banks.
Debt from Consolidations
Debt from consolidations includes debt from both MBS trust consolidations and certain secured borrowings.
Debt from MBS trust consolidations represents our liability to third-party beneficial interest holders when the
assets of a corresponding trust have been included in the consolidated balance sheets and we do not own all of
the beneficial interests in the trust. Long-term debt from these transactions in the consolidated balance sheets
as of December 31, 2006 and 2005 was $5.4 billion and $5.1 billion, respectively.
F-48
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)