Fannie Mae 2010 Annual Report Download - page 334

Debt of Consolidated Trusts
Debt of consolidated trusts represents our liability to third-party beneficial interest holders when we have
included the assets of a corresponding trust in our consolidated balance sheets and we do not own all of the
beneficial interests in the trust.
Characteristics of Debt
As of December 31, 2010 and 2009, the face amount of our debt securities of Fannie Mae was $792.6 billion
and $784.0 billion, respectively. As of December 31, 2010 and 2009, we had zero-coupon debt with a face
amount of $174.2 billion and $226.5 billion, respectively, which had an effective interest rate of 0.83% and
0.67%, respectively.
We issue callable debt instruments to manage the duration and prepayment risk of expected cash flows of the
mortgage assets we own. Our outstanding debt as of December 31, 2010 and 2009 included $219.8 billion and
$210.2 billion, respectively, of callable debt that could be redeemed in whole or in part at our option any time
on or after a specified date.
The following table displays the amount of our long-term debt as of December 31, 2010 by year of maturity
for each of the years 2011 through 2015 and thereafter. The first column assumes that we pay off this debt at
maturity or on the call date if the call has been announced, while the second column assumes that we redeem
our callable debt at the next available call date.
Long-Term Debt by
Year of Maturity
Assuming Callable Debt
Redeemed at Next
Available Call Date
(Dollars in millions)
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 97,245 $ 297,703
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,913 146,091
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,278 65,677
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,705 45,553
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,741 18,282
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,278 54,854
Total debt of Fannie Mae
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . 628,160 628,160
Debt of consolidated trusts
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . 2,411,597 2,411,597
Total long-term debt
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,039,757 $3,039,757
(1)
Reported amount includes a net discount and other cost basis adjustments of $12.4 billion.
(2)
Contractual maturity of debt of consolidated trusts is not a reliable indicator of expected maturity because borrowers
of the underlying loans generally have the right to prepay their obligations at any time.
(3)
Includes a portion of structured debt instruments that is reported at fair value.
The following table displays the amount of our debt of Fannie Mae that was called and repurchased and the
associated weighted-average interest rates for the years ended December 31, 2010, 2009 and 2008.
2010 2009 2008
For the Year Ended December 31,
(Dollars in millions)
Debt called . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $289,770 $166,777 $158,988
Weighted-average interest rate of debt called . . . . . . . . . . . . . . . . . . . . . . 3.1% 4.2% 5.3%
Debt repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,333 $ 6,919 $ 13,214
Weighted-average interest rate of debt repurchased . . . . . . . . . . . . . . . . . . 3.3% 4.3% 4.8%
F-76
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)