Freddie Mac 2014 Annual Report Download - page 133

128 Freddie Mac
Table 58 — Activity in Other Debt
For the Year Ended December 31,
2014 2013
(dollars in millions)
Beginning balance $ 511,345 $ 552,472
Issued during the period:
Short-term:
Amount $ 217,716 $ 297,349
Weighted-average effective interest rate 0.11% 0.12%
Long-term:
Amount $ 92,641 $ 112,220
Weighted-average effective interest rate 1.16% 0.98%
Total issued:
Amount $ 310,357 $ 409,569
Weighted-average effective interest rate 0.42% 0.35%
Paid off during the period:(1)
Short-term:
Amount $ (224,814) $ (273,513)
Weighted-average effective interest rate 0.12% 0.13%
Long-term:
Amount $ (142,859) $ (177,183)
Weighted-average effective interest rate 1.61% 1.57%
Total paid off:
Amount $ (367,673) $ (450,696)
Weighted-average effective interest rate 0.70% 0.70%
Ending balance $ 454,029 $ 511,345
(1) Calls and repurchases of zero-coupon debt are reported at original face value, which does not equal the amount of actual cash payment.
Other Short-Term Debt
We fund our operating cash needs, in part, by issuing Reference Bills® securities and other discount notes, which are
short-term instruments with maturities of one year or less that are sold on a discounted basis, paying only principal at maturity.
Our Reference Bills securities program consists of issues of short-term debt that we auction to dealers on a regular schedule.
We issue discount notes with maturities ranging from one day to one year in response to investor demand and our cash needs.
For purposes of presentation in this report, short-term debt also includes certain medium-term notes that have original
maturities of one year or less.
See “CONSOLIDATED BALANCE SHEETS ANALYSIS — Total Debt, Net” for more information about our other
short-term debt.
Other Long-Term Debt
We issue debt with maturities greater than one year primarily through our medium-term notes program and our Reference
Notes® securities program. Since 2013, we have been issuing STACR debt notes.
Medium-term Notes
We issue a variety of fixed- and variable-rate medium-term notes, including callable and non-callable fixed-rate
securities, zero-coupon securities and variable-rate securities, with various maturities ranging up to 30 years. However, in 2014
we did not issue medium-term notes with maturities longer than 15 years. For purposes of presentation in this report, medium-
term notes with original maturities of one year or less are classified as short-term debt. Medium-term notes typically contain
call provisions, effective as early as three months after the securities are issued.
Reference Notes Securities
Reference Notes securities are, U.S. dollar denominated, non-callable fixed-rate securities, which we generally issue with
original maturities ranging from two through ten years.
STACR
In 2014, as part of our credit risk management strategy, we completed seven STACR debt note transactions in which we
issued $4.9 billion of STACR debt notes, in aggregate. For more information, see "RISK MANAGEMENT — Credit Risk
Overview — Mortgage Credit Risk Overview — Single-Family Mortgage Credit Risk Framework and Profile — Transferring
a Portion of Mortgage Credit Risk" and "NOTE 8: DEBT AND SUBORDINATED BORROWNGS — Table 8.2 — Other
Long-Term Debt."
Table of Contents