Freddie Mac 2015 Annual Report Download - page 129
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Management's Discussion and Analysis Risk Management | MRS Credit Risk
Freddie Mac 2015 Form 10-K 127
Over the last several years, consistent with our efforts to reduce the balance of our less liquid mortgage-
related assets, we continued to identify additional available-for-sale securities that we intend to sell. As a
result, we recognized the full amount of the unrealized loss on these securities in earnings. The “intent to
sell” related impairment recognized in earnings declined during 2015 compared to 2014, as the
unrealized losses associated with those securities we intend to sell were lower due to improvements in
forecasted home prices, declines in market interest rates, and tightening of credit spreads on non-agency
mortgage-related securities. See “Conservatorship and Related Matters - Limits on Our Mortgage-Related
Investments Portfolio and Indebtedness” for additional information on the limits on our mortgage-related
investments portfolio.
The "other" impairment amount relates to increases in our estimate of the present value of expected
future credit losses on certain individual available-for-sale securities. The portion of the impairment
related to credit losses has declined since 2013, as a result of improved pricing, stabilized collateral
performance, and our efforts to sell certain of the non-agency mortgage-related securities. We sell non-
agency mortgage-related securities for a variety of reasons, including return versus risk profile.