Freddie Mac 2012 Annual Report Download - page 262

We consider federal funds sold to be overnight unsecured trades executed with commercial banks that are members of
the Federal Reserve System. We did not hold any federal funds sold at December 31, 2012 or 2011.
Collateral Pledged by Freddie Mac
We are required to pledge collateral for margin requirements with third-party custodians in connection with secured
financings and derivative transactions with some counterparties. The amount of collateral pledged related to our derivative
instruments is determined after giving consideration to our credit rating. As of December 31, 2012, we had one secured,
uncommitted intraday line of credit with a third party in connection with the Federal Reserve’s payments system risk policy,
which restricts or eliminates daylight overdrafts by the GSEs, in connection with our use of the Fedwire system. In certain
circumstances, the line of credit agreement gives the secured party the right to repledge the securities underlying our
financing to other third parties, including the Federal Reserve Bank. We pledge collateral to meet our collateral requirements
under the line of credit agreement upon demand by the counterparty.
The table below summarizes all securities pledged as collateral by us, including assets that the secured party may
repledge and those that may not be repledged.
Table 7.10 — Collateral in the Form of Securities Pledged
December 31, 2012 December 31, 2011
(in millions)
Securities pledged with the ability for the secured party to repledge:
Debt securities of consolidated trusts held by third parties(1) .................................. $10,390 $10,293
Available-for-sale securities ........................................................ 132 204
Securities pledged without the ability for the secured party to repledge:
Debt securities of consolidated trusts held by third parties(1) .................................. 148 88
Total securities pledged ............................................................. $10,670 $10,585
(1) Represents PCs held by us in our Investments segment mortgage investments portfolio and pledged as collateral which are recorded as a reduction to
debt securities of consolidated trusts held by third parties on our consolidated balance sheets.
Securities Pledged with the Ability of the Secured Party to Repledge
At December 31, 2012, we pledged securities with the ability of the secured party to repledge of $10.5 billion, of which
$10.5 billion was collateral posted in connection with our secured uncommitted intraday line of credit with a third party as
discussed above.
At December 31, 2011, we pledged securities with the ability of the secured party to repledge of $10.5 billion, of which
$10.5 billion was collateral posted in connection with our secured uncommitted intraday line of credit with a third party as
discussed above.
The remaining $65 million and $25 million of collateral posted with the ability of the secured party to repledge at
December 31, 2012 and 2011, respectively, was posted in connection with our margin account related to futures transactions.
Securities Pledged without the Ability of the Secured Party to Repledge
At December 31, 2012 and 2011, we pledged securities, without the ability of the secured party to repledge, of
$148 million and $88 million, respectively, at a clearinghouse in connection with the trading and settlement of securities.
Collateral in the Form of Cash Pledged
At December 31, 2012, we pledged $9.8 billion of collateral in the form of cash and cash equivalents, of which
$9.7 billion related to our derivative agreements as we had $9.7 billion of such derivatives in a net loss position. At
December 31, 2011, we pledged $12.7 billion of collateral in the form of cash and cash equivalents, of which $12.6 billion
related to our derivative agreements as we had $12.7 billion of such derivatives in a net loss position. The remaining $110
million and $133 million was posted at clearinghouses in connection with our securities transactions at December 31, 2012
and 2011, respectively.
257 Freddie Mac