Sallie Mae 2009 Annual Report Download - page 101
Download and view the complete annual report
Please find page 101 of the 2009 Sallie Mae annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
-
241
-
242
-
243
-
244
-
245
-
246
-
247
-
248
-
249
-
250
-
251
-
252
-
253
-
254
-
255
-
256
 |
 |
collateral to the counterparties. If we were unable to collect from a counterparty related to the Company and
on-balance sheet trust derivatives, we would have a loss equal to the amount the derivative is recorded on our
balance sheet. If we were unable to collect from a counterparty related to an off-balance sheet trust derivative,
the value of our Residual Interest on our balance sheet would be reduced through earnings.
The Company has liquidity exposure related to collateral movements between SLM Corporation and its
derivative counterparties. The collateral movements can increase or decrease our primary liquidity depending
on the nature of the collateral (whether cash or securities), the Company’s and counterparties’ credit ratings
and on movements in the value of the derivatives, which are primarily impacted by changes in interest rate
and foreign exchange rates. These movements may require the Company to return cash collateral posted or
may require the Company to access primary liquidity to post collateral to counterparties. As of December 31,
2009, the Company held $821 million cash collateral in unrestricted cash accounts. If the Company’s credit
ratings are downgraded from current levels, it may be required to segregate such collateral in restricted
accounts.
The table below highlights exposure related to our derivative counterparties at December 31, 2009.
SLM Corporation
Contracts
On-Balance Sheet
Securitizations
Contracts
Off-Balance Sheet
Securitizations
Contracts
Exposure, net of collateral . .............. $246 $1,182 $603
Percent of exposure to counterparties with
credit ratings below S&P AA- or Moody’s
Aa3 ............................. 56% 42% 28%
Percent of exposure to counterparties with
credit ratings below S&P A- or Moody’s
A3 .............................. 0% 0% 0%
100