Freddie Mac 2008 Annual Report Download - page 227

Table 8.2 provides additional information related to our short-term debt.
Table 8.2 — Short-Term Debt
Par Value
Balance,
Net
(1)
Effective
Rate
(2)
Par Value
(3)
Balance,
Net
(1)
Effective
Rate
(2)
2008 2007
December 31,
(dollars in millions)
Reference Bills˛securities and discount notes . . . . . ............. $311,227 $310,026 1.67% $198,323 $196,426 4.52%
Medium-term notes . . .................................. 19,675 19,676 2.61 1,175 1,175 4.36
Short-term debt securities . . . . . . . . . . ..................... 330,902 329,702 1.73 199,498 197,601 4.52
Current portion of long-term debt . . . . . . ..................... 105,420 105,412 3.46 98,432 98,320 4.44
Short-term debt...................................... $436,322 $435,114 2.15 $297,930 $295,921 4.49
(1) Represents par value, net of associated discounts, premiums and foreign-currency-related basis adjustments.
(2) Represents the weighted average effective rate that remains constant over the life of the instrument, which includes the amortization of discounts or
premiums and issuance costs. For 2008, the current portion of long-term debt includes the amortization of hedge-related basis adjustments.
(3) Certain prior period amounts have been revised to conform to the current year presentation.
Long-Term Debt
Table 8.3 summarizes our long-term debt.
Table 8.3 — Long-Term Debt
Contractual
Maturity
(1)
Par Value
Balance,
Net
(2)
Interest
Rates Par Value
(3)
Balance,
Net
(2)
Interest
Rates
2008 2007
December 31,
(dollars in millions)
Long-term debt:
Senior debt:
(4)
Fixed-rate:
Medium-term notes — callable
(5)
. . . . . 2010 – 2038 $158,228 $158,018 1.61% – 6.85% $169,588 $169,519 3.00% – 7.50%
Medium-term notes — non-callable . . . . 2010 – 2028 7,285 7,527 1.00% – 13.25% 7,122 7,399 1.00% – 14.32%
U.S. dollar Reference Notes˛
securities — non-callable . . ....... 2010 – 2032 197,781 197,609 2.38% – 7.00% 202,139 201,745 3.38% – 7.00%
AReference Notes˛securities —
non-callable . ................. 2010 – 2014 11,295 11,740 4.38% – 5.75% 13,914 9,649 3.75% – 5.75%
Variable-rate:
Medium-term notes — callable
(6)
. . . . . 2010 – 2030 11,169 11,170 Various 22,913 22,909 Various
Medium-term notes — non-callable . . . . 2010 – 2026 2,495 2,520 Various 2,653 2,688 Various
Zero-coupon:
Medium-term notes — callable
(7)
. . . . . 2024 – 2038 25,492 5,136 —% 45,725 9,544 —%
Medium-term notes — non-callable
(8)
. . . 2010 – 2039 15,425 9,415 —% 14,493 9,556 —%
Foreign-currency-related and hedging-
related basis adjustments ........... N/A 267 N/A 5,138
Total senior debt . ................. 429,170 403,402 478,547 438,147
Subordinated debt:
Fixed-rate
(9)
..................... 2011 – 2018 4,452 4,394 5.00% – 8.25% 4,452 4,388 5.00% – 8.25%
Zero-coupon
(10)
.................. 2019 332 111 —% 332 101 —%
Total subordinated debt . ............ 4,784 4,505 4,784 4,489
Total long-term debt. . ................. $433,954 $407,907 $483,331 $442,636
(1) Represents contractual maturities at December 31, 2008.
(2) Represents par value of long-term debt securities and subordinated borrowings, net of associated discounts or premiums.
(3) Certain prior period amounts have been revised to conform to the current year presentation.
(4) For debt denominated in a currency other than the U.S. dollar, the outstanding balance is based on the exchange rate at December 31, 2008 and 2007,
respectively.
(5) Includes callable Estate Notes
SM
securities and FreddieNotes˛securities of $9.4 billion and $14.1 billion at December 31, 2008 and 2007, respectively.
These debt instruments represent medium-term notes that permit persons acting on behalf of deceased beneficial owners to require us to repay principal
prior to the contractual maturity date.
(6) Includes callable Estate Notes
SM
securities and FreddieNotes˛securities of $2.0 billion and $6.3 billion at December 31, 2008 and 2007.
(7) The effective rates for zero-coupon medium-term notes — callable ranged from 6.11% – 7.25% and 5.57% – 7.17% at December 31, 2008 and 2007,
respectively.
(8) The effective rates for zero-coupon medium-term notes — non-callable ranged from 2.49% – 11.18% and 3.46% – 10.68% at December 31, 2008 and
2007, respectively.
(9) Balance, net includes callable subordinated debt of $— at both December 31, 2008 and 2007.
(10) The effective rate for zero-coupon subordinated debt, due after one year was 10.51% and 10.20% at December 31, 2008 and 2007, respectively.
A portion of our long-term debt is callable. Callable debt gives us the option to redeem the debt security at par on one
or more specified call dates or at any time on or after a specified call date.
224 Freddie Mac