Freddie Mac 2015 Annual Report Download - page 78

Management's Discussion and Analysis Our Business Segments | Investments
Freddie Mac 2015 Form 10-K 76
Net Interest Yield and Average Balances
Net Interest Yield & Average Investments Portfolio Balance
Commentary
• The average balance of the mortgage-related securities that we manage declined by 10.3% during
2015 compared to 2014, consistent with the company's efforts to comply with the mortgage-related
investments portfolio limits. The decline in the balance of our mortgage-related securities was
primarily due to pay-downs of certain agency mortgage-related securities and pay-downs and sales of
certain non-agency mortgage-related securities.
• The average balance of the single-family unsecuritized mortgage loans that we manage declined by
4.6% during 2015 compared to 2014, primarily due to the securitization of certain reperforming loans
and performing modified loans.
• The average balance of the non-mortgage-related assets that we manage will fluctuate period to
period based on our liquidity needs, investment strategy, and investment returns. This portfolio
reflects our investments for operating purposes as well as the restricted assets that we hold and
invest on behalf of consolidated trusts and cash that has been pledged to us under various
agreements.
• Net interest yield declined 29 basis points during 2015, primarily due to a decline in the average yield
earned from the mortgage-related assets that we manage. This decline was primarily driven by the
pay-down of certain higher-yielding agency securities. Although we acquired additional agency