Fannie Mae 2005 Annual Report Download - page 277

Long-term Debt
Long-term debt represents borrowings with an original contractual maturity of greater than one year. The
following table displays our long-term debt as of December 31, 2005 and 2004.
Maturities Outstanding
Weighted
Average
Interest
Rate
(1)
Maturities Outstanding
Weighted
Average
Interest
Rate
(1)
2005 2004
As of December 31,
(Dollars in millions)
Senior fixed:
Medium-term notes . . . . . . . . . . . . . . . . . 2006-2015 $207,445 3.92% 2005-2014 $197,729 3.18%
Benchmark notes & bonds . . . . . . . . . . . . 2006-2030 288,515 4.69 2005-2030 298,234 4.79
Foreign exchange notes & bonds. . . . . . . . 2006-2028 4,236 3.73 2005-2028 4,792 3.68
Other long-term debt . . . . . . . . . . . . . . . . 2006-2038 46,320 5.99 2005-2038 39,125 6.13
546,516 4.50 539,880 4.29
Senior floating:
Medium-term notes . . . . . . . . . . . . . . . . . 2006-2010 23,257 4.34 2005-2009 69,949 2.28
Other long-term debt . . . . . . . . . . . . . . . . — — 2018-2018 300 2.74
23,257 4.34 70,249 2.28
Subordinated fixed:
Medium-term notes . . . . . . . . . . . . . . . . . 2006-2011 6,994 5.44 2006-2011 6,988 5.44
Other subordinated debt . . . . . . . . . . . . . . 2012-2019 7,250 6.25 2012-2019 7,207 6.23
14,244 5.85 14,195 5.84
Debt from consolidations . . . . . . . . . . . . . . . 2006-2039 6,807 5.85 2005-2039 8,507 5.76
Total long-term debt
(2)
. . . . . . . . . . . . . . . $590,824 4.54% $632,831 4.13%
(1)
Includes discounts, premiums and other cost basis adjustments.
(2)
Reported amounts include a net premium and cost basis adjustments of $10.7 billion and $11.2 billion as of
December 31, 2005 and 2004, respectively.
Our long-term debt includes a variety of debt types. We issue both fixed and floating medium-term notes,
which range in maturity from one to ten years and are issued through dealer banks. We also offer both senior
and subordinated benchmark notes and bonds in large, regularly-scheduled issuances that provide increased
efficiency, liquidity and tradability to the market. We have not issued subordinated benchmark debt since
2003. Our outstanding subordinated benchmark debt, net of discounts, premiums and other cost basis
adjustments, was $14.2 billion for both the years ended December 31, 2005 and 2004. Additionally, we have
issued notes and bonds denominated in several foreign currencies and are prepared to issue debt in numerous
other currencies. All foreign currency-denominated transactions are swapped back into U.S. dollars through
the use of foreign currency swaps for the purpose of funding our mortgage assets.
Our other long-term debt includes callable and non-callable securities, which include all long-term non-
benchmark securities, such as zero-coupons, fixed and other long-term securities, and are generally negotiated
underwritings with one or more dealers or dealer banks.
Debt from Consolidations
Debt from consolidations includes debt from both MBS trust consolidations and certain secured borrowings.
Debt from MBS trust consolidations represents our liability to third-party beneficial interest holders when the
assets of a corresponding trust have been included in the consolidated balance sheets and we do not own all of
F-48
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)