Fannie Mae 2014 Annual Report Download - page 105

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Fannie Mae Debt Funding Activity
Table 24 displays the activity in debt of Fannie Mae. This activity excludes the debt of consolidated trusts and intraday loans.
The reported amounts of debt issued and paid off during the period represent the face amount of the debt at issuance and
redemption, respectively. Activity for short-term debt of Fannie Mae relates to borrowings with an original contractual
maturity of one year or less while activity for long-term debt of Fannie Mae relates to borrowings with an original contractual
maturity of greater than one year.
Table 24: Activity in Debt of Fannie Mae
For the Year Ended December 31,
2014 2013 2012
(Dollars in millions)
Issued during the period:
Short-term:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 213,683 $ 216,475 $ 246,092
Weighted-average interest rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.08% 0.11% 0.12%
Long-term:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,805 $ 138,404 $ 255,902
Weighted-average interest rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.79% 1.07% 1.26%
Total issued:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 259,488 $ 354,879 $ 501,994
Weighted-average interest rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.38% 0.49% 0.70%
Paid off during the period:(1)
Short-term:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 180,920 $ 249,357 $ 287,624
Weighted-average interest rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.09% 0.12% 0.12%
Long-term:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 148,186 $ 192,861 $ 334,564
Weighted-average interest rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.80% 1.72% 1.88%
Total paid off:
Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 329,106 $ 442,218 $ 622,188
Weighted-average interest rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.86% 0.82% 1.06%
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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 2014 compared with 2013 primarily due to lower funding needs as our retained mortgage
portfolio decreased. Redemptions of callable debt decreased in 2014 compared with 2013 due to higher average interest rates.
Many factors could affect the amount, mix and cost of our debt funding, reduce demand for our debt securities, increase our
liquidity or roll-over risk, or have a material adverse impact on our liquidity, financial condition and results of operations,
including:
• changes or perceived changes in federal government support of our business;
• our status as a GSE;
• future changes or disruptions in the financial markets;
• a change or perceived change in the creditworthiness of the U.S. government, due to our reliance on the U.S.
government’s support; or
• a downgrade in our credit ratings.
We believe that continued federal government support of our business, as well as our status as a GSE, are essential to
maintaining our access to debt funding. See “Risk Factors” for a discussion of the risks we face relating to: (1) the uncertain