Fannie Mae 2014 Annual Report Download - page 106

101
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; (3) our liquidity contingency plans; and (4) our credit ratings. Also see “Business—Housing
Finance Reform” for more information on GSE reform.
Outstanding Debt
Total outstanding debt of Fannie Mae includes short-term and long-term debt, excluding debt of consolidated trusts.
Our outstanding short-term debt, based on its original contractual maturity, as a percentage of our total outstanding debt was
23% as of December 31, 2014 compared with 14% as of December 31, 2013. For information on our outstanding debt
maturing within one year, including the current portion of our long-term debt, as a percentage of our total debt, see “Maturity
Profile of Outstanding Debt of Fannie Mae.” In addition, the weighted-average interest rate on our long-term debt, based on
its original contractual maturity, increased to 2.24% as of December 31, 2014 from 2.14% as of December 31, 2013.
Pursuant to the terms of the senior preferred stock purchase agreement, we are prohibited from issuing debt without the prior
consent of Treasury if it would result in our aggregate indebtedness exceeding our outstanding debt limit, which is 120% of
the amount of mortgage assets we were allowed to own under the senior preferred stock purchase agreement on December 31
of the immediately preceding calendar year. Our debt limit under the senior preferred stock purchase agreement was reduced
to $663.0 billion in 2014. As of December 31, 2014, our aggregate indebtedness totaled $464.5 billion, which was $198.5
billion below our debt limit. Our debt limit in 2015 is $563.6 billion. The calculation of our indebtedness for purposes of
complying with our debt limit reflects the unpaid principal balance and excludes debt basis adjustments and debt of
consolidated trusts. Because of our debt limit, we may be restricted in the amount of debt we issue to fund our operations.