Fannie Mae 2005 Annual Report Download - page 155

Our uses of cash currently consist primarily of:
• the repayment of matured, redeemed and repurchased debt;
• the purchase of mortgage loans, mortgage-related securities and other investments;
• the payment of interest payments on outstanding debt;
• net payments on derivative agreements;
• the pledging and delivery of cash and cash equivalents as collateral under derivative instruments;
• the payment of administrative expenses;
• the payment of federal income taxes;
• losses incurred in connection with our Fannie Mae MBS guaranty obligations; and
• the payment of dividends on our common and preferred stock.
Debt Funding
Because our primary source of cash is proceeds from the issuance of our debt securities, we depend on our
continuing ability to issue debt securities in the capital markets to meet our cash requirements. We issue a
variety of non-callable and callable debt securities in the domestic and international capital markets in a wide
range of maturities to meet our large and continuous funding needs. Our Capital Markets group is responsible
for the issuance of debt securities to meet our funding needs. Table 33 below provides a summary of our debt
activity for the years ended December 31, 2005, 2004 and 2003. Table 34 below shows our outstanding short-
term borrowings for the years ended December 31, 2005, 2004 and 2003.
Table 33: Debt Activity
2005 2004 2003
For the Year Ended December 31,
(Dollars in millions)
Issued during the year:
(1)
Short-term:
(2)
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,795,854 $2,055,759 $2,234,000
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.20% 1.50% 1.07%
Long-term:
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 156,437 $ 252,658 $ 348,112
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 4.41% 2.90% 2.58%
Total issued:
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,952,291 $2,308,417 $2,582,112
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.26% 1.66% 1.28%
Redeemed during the year:
(1)(4)
Short-term:
(2)
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,944,027 $2,081,726 $2,191,992
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.03% 1.34% 1.12%
Long-term:
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 196,957 $ 238,686 $ 279,168
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.51% 3.26% 3.66%
Total redeemed:
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,140,984 $2,320,412 $2,471,160
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.06% 1.54% 1.41%
(1)
Excludes debt activity resulting from consolidations.
(2)
Includes Federal funds purchased and securities sold under agreements to repurchase.
(3)
Represents the face amount at issuance or redemption.
(4)
Represents all payments on debt, including regularly scheduled principal payments, payments at maturity, payments as
the result of a call and payments for any other repurchases.
150