Freddie Mac 2015 Annual Report Download - page 81

Management's Discussion and Analysis Our Business Segments | Investments
Freddie Mac 2015 Form 10-K 79
Funding Activity
The table below summarizes our funding activity.
Year Ended December 31,
(in millions) 2015 2014 2013
Discount notes and Reference Bills:
Beginning balance $ 134,670 $ 137,767 $ 117,930
Issuances 427,964 217,717 293,350
Maturities (458,546)(220,747)(273,513)
Other — (67) —
Ending balance 104,088 134,670 137,767
Callable debt:
Beginning balance 107,070 108,391 102,908
Issuances 128,612 66,128 69,738
Repurchases — (2,592) (1,879)
Calls (124,435) (61,288) (59,557)
Maturities (3,572) (3,563) (2,816)
Other — (6) (3)
Ending balance 107,675 107,070 108,391
Non-callable debt:
Beginning balance 206,393 264,080 331,634
Issuances 42,520 21,595 45,353
Repurchases (397) (1,413) (197)
Maturities (54,144) (77,869) (112,731)
Other — — 21
Ending balance 194,372 206,393 264,080
Total other debt $ 406,135 $ 448,133 $ 510,238
Commentary
• We fund our business activities primarily through the issuance of unsecured other short-term (e.g.,
discount notes and Reference Bills), medium-term and long-term debt. The outstanding balance of
our other debt declined during 2015, as we required less debt to fund our business operations, as the
balance of our mortgage-related investments portfolio continued to decline.
• During 2015, we began to utilize overnight discount notes as a more cost effective tool to manage our
intra-day liquidity needs. This resulted in an increase in both issuances and pay-offs of our short-term
other debt.
• Issuances and calls of our longer-term callable debt increased during 2015, as we refinanced more of
our outstanding callable debt due to the low interest rate environment. See "Market Conditions" for
additional discussion of interest rates.