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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 05/07/2015
Entire Document
 


(7) 
Consists of the unpaid principal balance of long-term callable debt of Fannie Mae that can be paid off in whole or in part at our option at any time on or after a specified date.
Maturity Profile of Outstanding Debt of Fannie Mae
Our outstanding short-term debt, as a percentage of our total outstanding debt, was 22% as of March 31, 2015 compared with 23% as of December 31, 2014. The weighted-average interest rate on our long-term debt increased to 2.29% as of March 31, 2015 from 2.24% as of December 31, 2014.
Our outstanding debt maturing within one year, including the current portion of our long-term debt and amounts we have announced for early redemption, as a percentage of our total outstanding debt, excluding debt of consolidated trusts, was 36% as of March 31, 2015 and 37% as of December 31, 2014. The weighted-average maturity of our outstanding debt that is maturing within one year was 133 days as of March 31, 2015, compared with 131 days as of December 31, 2014. The weighted-average maturity of our outstanding debt maturing in more than one year was approximately 60 months as of March 31, 2015, compared with approximately 61 months as of December 31, 2014. We intend to repay our short-term and long-term debt obligations as they become due primarily through proceeds from the issuance of additional debt securities. We also may use proceeds from our mortgage assets to pay our debt obligations.
Cash and Other Investments Portfolio
The balance of our cash and other investments portfolio fluctuates based on changes in our cash flows, overall liquidity in the fixed income markets and our liquidity risk management policies and practices. See “Risk Management—Credit Risk Management—Institutional Counterparty Credit Risk Management—Counterparty Credit Exposure of Investments Held in our Cash and Other Investments Portfolio” for additional information on the risks associated with the assets in our cash and other investments portfolio.
Table 21 displays information on the composition of our cash and other investments portfolio.
Table 21: Cash and Other Investments Portfolio
 
As of
 
March 31, 2015
 
December 31, 2014
 
(Dollars in millions) 
Cash and cash equivalents
 
$
23,860

 
 
 
$
22,023

 
Federal funds sold and securities purchased under agreements to resell or similar arrangements
 
20,230

 
 
 
30,950

 
U.S. Treasury securities
 
19,367

 
 
 
19,466

 
Total cash and other investments
 
$
63,457

 
 
 
$
72,439

 
Credit Ratings
As of March 31, 2015, our credit ratings have not changed since we filed our 2014 Form 10-K. For additional information on our credit ratings, see “Management’s Discussion and Analysis—Liquidity and Capital Management—Fannie Mae Credit Ratings” in our 2014 Form 10-K.
Cash Flows
Three Months Ended March 31, 2015. Cash and cash equivalents increased by $1.8 billion from $22.0 billion as of December 31, 2014 to $23.9 billion as of March 31, 2015. The increase in the balance was primarily driven by cash inflows from (1) issuances of long-term debt of consolidated trusts resulting from the sale of Fannie Mae MBS to third parties, (2) proceeds from repayment of loans of Fannie Mae, (3) the sale of our REO inventory and (4) proceeds from sale and liquidations of mortgage-related securities.
Partially offsetting these cash inflows were cash outflows from (1) acquiring mortgage loans and providing advances to lenders, and (2) the acquisition of delinquent loans out of MBS trusts.
Three Months Ended March 31, 2014. Cash and cash equivalents decreased by $5.2 billion from $19.2 billion as of December 31, 2013 to $14.1 billion as of March 31, 2014. The decrease in the balance was primarily driven by cash outflow from (1) acquiring mortgage loans and providing advances to lenders; (2) payments to redeem funding debt, which outpaced issuances, due to lower funding needs, (3) acquisition of delinquent loans out of MBS trusts, and (4) the payment of dividends to Treasury under our senior preferred stock purchase agreement.

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