Freddie Mac 2010 Annual Report Download - page 94

Table 22 — Investments in Trading Securities
2010 2009 2008
December 31,
(in millions)
Mortgage-related securities:
Freddie Mac . . . . . ............................................................ $13,437 $170,955 $158,822
Fannie Mae .................................................................. 18,726 34,364 31,309
Ginnie Mae .................................................................. 172 185 198
Other . . . ................................................................... 31 28 32
Total mortgage-related securities . . . ............................................... 32,366 205,532 190,361
Non-mortgage-related securities:
Asset-backed securities .......................................................... 44 1,492 —
Treasury bills. . . . . ............................................................ 17,289 14,787 —
Treasury notes . . . . ............................................................ 10,122 — —
FDIC-guaranteed corporate medium-term notes . ......................................... 441 439 —
Total non-mortgage-related securities ............................................... 27,896 16,718 —
Total fair value of investments in trading securities ......................................... $60,262 $222,250 $190,361
Non-Mortgage-Related Securities
Our investments in non-mortgage-related securities provide an additional source of liquidity for us. We held investments
in non-mortgage-related available-for-sale and trading securities of $27.9 billion and $19.3 billion as of December 31, 2010
and December 31, 2009, respectively. Our holdings of non-mortgage-related securities at December 31, 2010 increased
compared to December 31, 2009 due to the acquisition of Treasury notes and additional Treasury bills to maintain required
liquidity and contingency levels, partially offset by our sale of the majority of our non-mortgage-related asset-backed
securities in 2010.
We did not record a net impairment of available-for-sale securities recognized in earnings during 2010 on our non-
mortgage-related securities. We recorded net impairments of $185 million for our non-mortgage-related securities during
2009, as we could not assert that we did not intend to, or will not be required to, sell these securities before a recovery of
the unrealized losses. See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” for further information on
how other-than-temporary impairments are recorded on our financial statements commencing in the second quarter of 2009.
Mortgage-Related Securities
We are primarily a buy-and-hold investor in mortgage-related securities, which consist of securities issued by Fannie
Mae, Ginnie Mae, and other financial institutions. We also invest in our own mortgage-related securities. However, upon our
adoption of amendments to the accounting standards for transfers of financial assets and consolidation of VIEs on January 1,
2010, we no longer account for single-family PCs and certain Other Guarantee Transactions we purchase as investments in
securities because we now recognize the underlying mortgage loans on our consolidated balance sheets through consolidation
of the related trusts.
Table 23 provides the UPB of our investments in mortgage-related securities classified as available-for-sale or trading on
our consolidated balance sheets. Due to the accounting changes noted above, Table 23 does not include our holdings of
single-family PCs and certain Other Guarantee Transactions as of December 31, 2010, but includes such securities as of
December 31, 2009. For further information on our holdings of such securities, see “Table 16 — Segment Mortgage Portfolio
Composition.”
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