Fannie Mae 2013 Annual Report Download - page 112

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Table 29: Activity in Debt of Fannie Mae
For the Year Ended December 31,
2013 2012 2011
(Dollars in millions)
Issued during the period:
Short-term:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 216,475 $ 246,092 $ 424,503
Weighted-average interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.11% 0.12% 0.12%
Long-term:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 138,404 $ 255,902 $ 256,670
Weighted-average interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.07% 1.26% 1.72%
Total issued:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 354,879 $ 501,994 $ 681,173
Weighted-average interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.49% 0.70% 0.72%
Paid off during the period: (1)
Short-term:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 249,357 $ 287,624 $ 429,711
Weighted-average interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.12% 0.12% 0.19%
Long-term:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 192,861 $ 334,564 $ 302,473
Weighted-average interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.72% 1.88% 2.52%
Total paid off:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 442,218 $ 622,188 $ 732,184
Weighted-average interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.82% 1.06% 1.15%
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(1) Consists of all payments on debt, including regularly scheduled principal payments, payments at maturity, payments resulting from
calls and payments for any other repurchases. Repurchases of debt and early retirements of zero-coupon debt are reported at original
face value, which does not equal the amount of actual cash payment.
Debt issuances decreased in 2013 compared with 2012 primarily due to lower funding needs as our retained mortgage
portfolio decreased. Redemptions of callable debt decreased in 2013 compared with 2012 due to increased interest rates. Our
debt funding activity is influenced by the size of our retained mortgage portfolio, anticipated liquidity needs and our dividend
payment obligations to Treasury.
We believe that continued federal government support of our business and the financial markets, as well as our status as a
GSE, are essential to maintaining our access to debt funding. Changes or perceived changes in federal government support of
our business and the financial markets or our status as a GSE could materially and adversely affect our liquidity, financial
condition and results of operations. For more information on GSE reform, see “Business—Housing Finance Reform” and
“Risk Factors.”
In addition, due to our reliance on the U.S. government’s support, our access to debt funding or the cost of our debt funding
could be materially adversely affected by a change or perceived change in the creditworthiness of the U.S. government. A
downgrade in our credit ratings could reduce demand for our debt securities and increase our borrowing costs. See “Risk
Factors” and “Credit Ratings” for further discussion of the importance of our credit ratings.
Future changes or disruptions in the financial markets could significantly change the amount, mix and cost of funds we
obtain, which also could increase our liquidity and roll-over risk and have a material adverse impact on our liquidity,
financial condition and results of operations. See “Risk Factors” for a discussion of the risks we face relating to (1) the
uncertain future of our company; (2) our reliance on the issuance of debt securities to obtain funds for our operations and the
relative cost to obtain these funds; and (3) our liquidity contingency plans.
Outstanding Debt
Total outstanding debt of Fannie Mae includes short-term and long-term debt, excluding debt of consolidated trusts.