Freddie Mac 2010 Annual Report Download - page 228

Table 9.2 provides additional information related to our other short-term debt. Prior periods have been reclassified to
conform to the current presentation.
Table 9.2 — Other Short-Term Debt
Par Value
Balance,
Net
(1)
Effective
Rate
(2)
Par Value
Balance,
Net
(1)
Effective
Rate
(2)
2010 2009
December 31,
(dollars in millions)
Reference Bills˛securities and discount notes ................... $194,875 $194,742 0.24% $227,732 $227,611 0.26%
Medium-term notes . . . .................................. 2,364 2,364 0.31 10,561 10,560 0.69
Other short-term debt .................................. $197,239 $197,106 0.25 $238,293 $238,171 0.28
(1) Represents par value, net of associated discounts and premiums.
(2) Represents the weighted average effective rate that remains constant over the life of the instrument, which includes the amortization of discounts or
premiums and issuance costs.
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase
Securities sold under agreements to repurchase are effectively collateralized borrowing transactions where we sell
securities with an agreement to repurchase such securities. These agreements require the underlying securities to be delivered
to the dealers who arranged the transactions. Federal funds purchased are unsecuritized borrowings from commercial banks
that are members of the Federal Reserve System. At both December 31, 2010 and 2009, we had no balances in federal funds
purchased and securities sold under agreements to repurchase.
Other Long-Term Debt
Table 9.3 summarizes our other long-term debt. Prior periods have been reclassified to conform to the current
presentation.
Table 9.3 — Other Long-Term Debt
Contractual
Maturity
(1)
Par Value
Balance,
Net
(2)
Interest
Rates Par Value
Balance,
Net
(2)
Interest
Rates
2010 2009
December 31,
(dollars in millions)
Other long-term debt:
Other senior debt:
(3)
Fixed-rate:
Medium-term notes — callable
(4)
.......... 2011-2037 $107,328 $107,272 0.40% – 6.50% $154,545 $154,417 1.00% – 6.63%
Medium-term notes — non-callable . . ....... 2011-2028 31,107 31,335 0.52% – 13.25% 15,071 15,255 1.00% – 13.25%
U.S. dollar Reference Notes˛securities —
non-callable ...................... 2011-2032 239,497 239,486 0.38% – 6.75% 253,781 253,696 1.13% – 7.00%
AReference Notes˛securities — non-callable . . 2012-2014 2,021 2,131 4.38% – 5.13% 5,668 5,921 4.38% – 5.75%
Variable-rate:
Medium-term notes — callable
(5)
.......... 2011-2030 32,404 32,403 Various 24,084 24,081 Various
Medium-term notes — non-callable . . ....... 2011-2026 91,332 91,346 Various 73,629 73,649 Various
Zero-coupon:
Medium-term notes — callable
(6)
.......... 2030-2040 12,191 2,971 —% 23,388 4,444 —%
Medium-term notes — non-callable
(7)
....... 2011-2039 14,189 9,035 —% 15,705 10,084 —%
Hedging-related basis adjustments ........... N/A 144 N/A 188
Total other senior debt. . ................. 530,069 516,123 565,871 541,735
Other subordinated debt:
Fixed-rate ........................... 2011-2018 578 575 5.00% – 8.25% 578 575 5.00% – 8.25%
Zero-coupon
(8)
........................ 2019 331 136 —% 331 123 —%
Total other subordinated debt . . ............ 909 711 909 698
Total other long-term debt
(9)
.................. $530,978 $516,834 $566,780 $542,433
(1) Represents contractual maturities at December 31, 2010.
(2) Represents par value of long-term debt securities and subordinated borrowings, net of associated discounts or premiums and hedge-related basis
adjustments.
(3) For debt denominated in a currency other than the U.S. dollar, the outstanding balance is based on the exchange rate at December 31, 2010 and 2009,
respectively.
(4) Includes callable FreddieNotes˛securities of $5.4 billion and $6.1 billion at December 31, 2010 and 2009, respectively.
(5) Includes callable FreddieNotes˛securities of $7.0 billion and $5.5 billion at December 31, 2010 and 2009, respectively.
(6) The effective rates for zero-coupon medium-term notes — callable ranged from 4.40% – 7.25% and 5.78% – 7.25% at December 31, 2010 and 2009,
respectively.
(7) The effective rates for zero-coupon medium-term notes — non-callable ranged from 0.52% – 11.18% and 0.56% – 11.18% at December 31, 2010 and
2009, respectively.
(8) The effective rate for zero-coupon subordinated debt was 10.51% at both December 31, 2010 and 2009.
(9) The effective rates for other long-term debt were 2.78% and 3.41% at December 31, 2010 and 2009, respectively. The effective rate represents the
weighted average effective rate that remains constant over the life of the instrument, which includes the amortization of discounts or premiums and
issuance costs and hedging-related basis adjustments.
225 Freddie Mac