Freddie Mac 2004 Annual Report Download - page 231
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Please find page 231 of the 2004 Freddie Mac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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NOTE 17: CONCENTRATION OF CREDIT AND OTHER RISKS
Mortgages and Mortgage-Related Securities
Table 17.1 summarizes the geographical concentration of mortgages and mortgage-related securities that
are held by Freddie Mac or that are collateral for PCs and Structured Securities excluding:
‚ $3,015 million and $4,729 million of mortgage-related securities issued by Ginnie Mae that back
Structured Securities at December 31, 2004 and 2003, respectively, because these securities do
not expose Freddie Mac to meaningful amounts of credit risk;
‚ $59,715 million and $77,289 million of agency mortgage-related securities at December 31, 2004
and 2003, respectively, because these securities do not expose Freddie Mac to meaningful
amounts of credit risk;
‚ $175,163 million and $114,772 million of non-agency mortgage-related securities held in the
Retained portfolio at December 31, 2004 and 2003, respectively, because geographic information
regarding these securities is not available. With respect to these securities, Freddie Mac looks to
third party credit enhancements (e.g., bond insurance) or other credit enhancements resulting
from the securitization structure (e.g., subordination levels) supporting such securities as a
primary means of managing credit risk; and
‚ $29,830 million and $48,585 million of non-Freddie Mac mortgage-related securities and
mortgage-related securities held in its Cash and investments portfolio that are important to
Freddie Mac's Ñnancial management and the company's ability to provide liquidity and stability to
the mortgage market at December 31, 2004 and 2003, respectively. These securities are excluded
because Freddie Mac tends to hold them for a short time period and the geographic information
regarding these securities is not available. In fourth quarter 2004, Freddie Mac ceased its PC
market-making and support activities accomplished through its Securities Sales & Trading Group
business unit and its external Money Manager program, which was a component of the $48,585
million balance at December 31, 2003.
See ""NOTE 5: RETAINED PORTFOLIO AND CASH AND INVESTMENTS PORTFOLIO'' for more
information about the securities Freddie Mac holds.
Freddie Mac
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