Fannie Mae 2005 Annual Report Download - page 267

5. 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, 2005 and 2004.
2005 2004
As of December 31,
(Dollars in millions)
Mortgage-related securities:
Fannie Mae single-class MBS
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $158,349 $276,178
Non-Fannie Mae single-class mortgage-related securities
(1)
. . . . . . . . . . . . . . . . . . . . 26,859 36,105
Fannie Mae structured MBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,102 73,367
Non-Fannie Mae structured mortgage-related securities. . . . . . . . . . . . . . . . . . . . . . . 86,006 109,820
Mortgage revenue bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,179 22,657
Other mortgage-related securities
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,463 5,346
Total mortgage-related securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $368,958 $523,473
Non-mortgage-related securities:
Asset-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,190 $ 25,645
Corporate debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,840 15,098
Municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 863
Other non-mortgage-related securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,086 2,303
Total non-mortgage-related securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,116 43,909
Total securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $406,074 $567,382
(1)
Includes $6.2 billion and $1.3 billion of unpaid principal of Fannie Mae structured MBS and non-Fannie Mae struc-
tured mortgage-related securities and $111 million and $180 million of unpaid principal 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, 2005 and 2004, 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 MBS of $14.6 billion
and $34.4 billion and non-Fannie Mae single-class mortgage-related securities of $503 million and $937 million
as of December 31, 2005 and 2004, respectively. For the years ended December 31, 2005, 2004 and 2003, we
recognized realized losses of $27 million and realized gains of $4 million and $186 million, respectively, on
the sale of trading securities. For the years ended December 31, 2005, 2004 and 2003, we recognized
unrealized losses of $282 million and unrealized gains of $133 million and $109 million, respectively, on
trading securities held as of the end of the year.
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
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FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)