Freddie Mac 2014 Annual Report Download - page 82

77 Freddie Mac
The short-term assets on our consolidated balance sheets also include those related to our consolidated VIEs, which
consisted primarily of restricted cash and cash equivalents and securities purchased under agreements to resell at December 31,
2014. These assets related to our consolidated VIEs increased by $6.7 billion from December 31, 2013 to December 31, 2014.
Our consolidated VIEs include the trusts that issue our single-family PCs. The short-term assets held by these trusts primarily
relate to payments of principal and interest received on the loans underlying the PCs that are held pending distribution to the
investors in those PCs.
Excluding amounts related to our consolidated VIEs, we held $10.9 billion and $11.3 billion of cash and cash equivalents
(including non-interest bearing deposits of $6.5 billion and $7.2 billion at the Federal Reserve Bank of New York), no federal
funds sold, and $38.4 billion and $59.2 billion of securities purchased under agreements to resell at December 31, 2014 and
2013, respectively. The decrease in these liquid assets at December 31, 2014 compared to December 31, 2013 was due in part
to the increase in the U.S. statutory debt limit in 2014, abating concerns that the U.S. would exhaust its borrowing authority.
Excluding amounts related to our consolidated VIEs, we held on average $11.0 billion and $11.6 billion of cash and cash
equivalents and $30.1 billion and $29.5 billion of federal funds sold and securities purchased under agreements to resell during
the three and twelve months ended December 31, 2014, respectively. In recent periods, our use of federal funds sold
transactions has been minimal.
For information regarding our liquidity management practices and policies, see “LIQUIDITY AND CAPITAL
RESOURCES.”
Investments in Securities
The two tables below provide detail regarding our investments in securities. The tables do not include our holdings of
single-family PCs and certain Other Guarantee Transactions. For information on our holdings of such securities, see “Table 21
— Composition of Segment Mortgage Portfolios and Credit Risk Portfolios.”
Table 25 — Investments in Available-For-Sale Securities
December 31,
2014 2013 2012
Amortized
Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value
(in millions)
Available-for-sale mortgage-related securities:
Freddie Mac $ 37,710 $ 39,099 $ 39,001 $ 40,659 $ 53,965 $ 58,515
Fannie Mae 10,860 11,313 10,140 10,797 14,183 15,280
Ginnie Mae 183 199 149 167 183 209
CMBS 20,988 21,822 29,151 30,338 47,606 51,307
Subprime 20,210 20,589 29,897 27,499 35,503 26,457
Option ARM 5,460 5,649 6,617 6,574 7,454 5,717
Alt-A and other 4,500 5,043 8,322 8,706 11,861 10,904
Obligations of states and political subdivisions 2,166 2,198 3,533 3,495 5,647 5,798
Manufactured housing 556 638 629 684 716 709
Total investments in available-for-sale mortgage-related
securities $ 102,633 $ 106,550 $ 127,439 $ 128,919 $ 177,118 $ 174,896
Table 26 — Investments in Trading Securities
December 31,
2014 2013 2012
(in millions)
Trading mortgage-related securities:
Freddie Mac $ 17,469 $ 9,349 $ 10,354
Fannie Mae 6,099 7,180 10,338
Ginnie Mae 16 98 131
Other 171 141 156
Total trading mortgage-related securities 23,755 16,768 20,979
Trading non-mortgage-related securities:
Asset-backed securities — — 292
U.S. Treasury securities 6,682 6,636 20,221
Total trading non-mortgage-related securities 6,682 6,636 20,513
Total fair value of investments in trading securities $ 30,437 $ 23,404 $ 41,492
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