Fannie Mae 2004 Annual Report Download - page 307

6. Investments in Securities
Our securities portfolio contains mortgage-related and non-mortgage-related securities. The following table
displays our investments in securities, which are presented at fair value as of December 31, 2004 and 2003.
2004 2003
As of December 31,
(Restated)
(Dollars in millions)
Mortgage-related securities:
Fannie Mae single-class MBS
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $276,178 $343,174
Non-Fannie Mae single-class mortgage-related securities
(1)
. . . . . . . . . . . . . . . . . . . . 36,105 34,066
Fannie Mae structured MBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,367 70,459
Non-Fannie Mae structured mortgage-related securities . . . . . . . . . . . . . . . . . . . . . . 109,820 45,570
Mortgage revenue bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,657 20,798
Other mortgage-related securities
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,346 6,171
Total mortgage-related securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $523,473 $520,238
Non-mortgage-related securities:
Asset-backed securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,645 $ 26,862
Corporate debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,098 16,432
Municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 863 1,203
Other non-mortgage-related securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,303 2,335
Total non-mortgage-related securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,909 46,832
Total securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $567,382 $567,070
(1)
Includes $1.3 billion and $268 million of Fannie Mae structured MBS and non-Fannie Mae structured mortgage-related
securities and $180 million and $136 million of mortgage revenue bonds that were consolidated to Fannie Mae single-
class MBS and non-Fannie Mae single-class mortgage-related securities as of December 31, 2004 and 2003,
respectively.
(2)
Includes commitments related to mortgage-related securities that are accounted for as securities.
Trading Securities
Trading securities are initially measured at fair value with changes in fair value recorded in “Investment losses,
net” in the consolidated statements of income. Trading securities include Fannie Mae single-class MBS of
$34.4 billion and $42.7 billion and non-Fannie Mae single-class mortgage-related securities of $937 million
and $1.1 billion as of December 31, 2004 and 2003, respectively. Unrealized gains on trading securities held
as of the end of the year totaled $133 million, $109 million and $209 million for the years ended December 31,
2004, 2003 and 2002, respectively.
Available-for-Sale Securities
AFS securities are initially measured at fair value and subsequent unrealized gains and losses are recorded as a
component of AOCI, net of deferred taxes, in “Stockholders’ equity.” The following table displays the gross
realized gains, losses and proceeds on sales of AFS securities for the years ended December 31, 2004, 2003 and
2002.
2004 2003 2002
(Restated) (Restated)
For the Year Ended December 31,
(Dollars in millions)
Gross realized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 332 $ 781 $ 150
Gross realized losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 896 197
Total proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,256 122,262 37,032
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FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)