Freddie Mac 2010 Annual Report Download - page 229

A portion of our other long-term debt is callable. Callable debt gives us the option to redeem the debt security at par on
one or more specified call dates or at any time on or after a specified call date.
Debt Securities of Consolidated Trusts Held by Third Parties
Debt securities of consolidated trusts held by third parties represents our liability to third parties that hold beneficial
interests in our consolidated securitization trusts (e.g., single-family PC trusts and certain Other Guarantee Transactions).
Table 9.4 summarizes the debt securities of our consolidated trusts held by third parties based on underlying mortgage
product type.
Table 9.4 — Debt Securities of Our Consolidated Trusts Held by Third Parties
(1)
Contractual
Maturity
(2)
UPB Balance, Net
Interest
Rates
(2)
December 31, 2010
(dollars in millions)
Debt securities of consolidated trusts held by third parties:
Single-family:
30-year or more, fixed-rate . . . ................................. 2011-2048 $1,110,943 $1,118,994 1.60% - 16.25%
20-year fixed-rate . . ........................................ 2012-2031 63,941 64,752 3.50% - 9.00%
15-year fixed-rate . . ........................................ 2011-2026 227,269 229,510 2.50% - 10.50%
Adjustable-rate
(3)
.......................................... 2011-2047 50,904 51,351 —% - 10.05%
Interest-only
(4)
............................................ 2026-2040 61,773 61,830 1.87% - 7.86%
FHA/VA .................................................. 2011-2040 2,171 2,211 1.60% - 15.00%
Total debt securities of consolidated trusts held by third parties
(5)
............. $1,517,001 $1,528,648
(1) Debt securities of consolidated trusts held by third parties are prepayable without penalty.
(2) Based on the contractual maturity and interest rates of debt securities of our consolidated trusts held by third parties.
(3) The minimum interest rate of 0% reflects interest rates on principal-only classes of Other Guarantee Transactions.
(4) Includes interest-only securities and interest-only mortgage loans that allow the borrowers to pay only interest for a fixed period of time before the loans
begin to amortize.
(5) The effective rate for debt securities of consolidated trusts held by third parties was 4.57% at December 31, 2010. The effective rate represents the
weighted average effective rate, which includes the amortization of discounts or premiums.
Table 9.5 summarizes the contractual maturities of other long-term debt securities and debt securities of consolidated
trusts held by third parties at December 31, 2010.
Table 9.5 — Contractual Maturity of Other Long-Term Debt and Debt Securities of Consolidated Trusts Held by
Third Parties
Annual Maturities Par Value
(1)(2)
(in millions)
Other debt:
2011 ..................................................................................... $ 120,951
2012 ..................................................................................... 138,474
2013 ..................................................................................... 79,177
2014 ..................................................................................... 36,328
2015 ..................................................................................... 45,779
Thereafter . . . ............................................................................... 110,269
Debt securities of consolidated trusts held by third parties
(3)
................................................. 1,517,001
Total . ...................................................................................... 2,047,979
Net discounts, premiums, hedge-related and other basis adjustments
(4)
......................................... (2,497)
Total debt securities of consolidated trusts held by third parties and other long-term debt . . ............................ $2,045,482
(1) Represents par value of long-term debt securities and subordinated borrowings and UPB of debt securities of our consolidated trusts held by third
parties.
(2) For other debt denominated in a currency other than the U.S. dollar, the par value is based on the exchange rate at December 31, 2010.
(3) Contractual maturities of debt securities of consolidated trusts held by third parties may not represent expected maturity as they are prepayable at any
time without penalty.
(4) Other basis adjustments primarily represent changes in fair value attributable to instrument-specific credit risk related to other foreign-currency-
denominated debt.
Lines of Credit
At both December 31, 2010 and 2009, we had one secured, uncommitted intraday line of credit with a third party
totaling $10 billion. We use this line of credit regularly to provide us with additional liquidity to fund our intraday activities
through the Fedwire system in connection with the Federal Reserve’s payments system risk policy, which restricts or
eliminates daylight overdrafts by GSEs. No amounts were drawn on this line of credit at December 31, 2010 or
December 31, 2009. We expect to continue to use the current facility to satisfy our intraday financing needs; however, as the
line is uncommitted, we may not be able to draw on it if and when needed.
226 Freddie Mac