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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 11/02/2018
Entire Document
 
 
Notes to Condensed Consolidated Financial Statements | Short-Term and Long-Term Debt


Long-Term Debt
Long-term debt represents debt with an original contractual maturity of greater than one year. The following table displays our outstanding long-term debt.
 
As of
 
September 30, 2018
 
December 31, 2017
 
Maturities
 
Outstanding
 
Weighted- Average Interest Rate(1)
 
Maturities
 
Outstanding
 
Weighted- Average Interest Rate(1)
 
(Dollars in millions)
Senior fixed:
 
 
 
 
 
 
 
 
 
 
 
Benchmark notes and bonds
2018 - 2030
 
$
111,190

 
2.33
%
 
2018 - 2030
 
$
123,541

 
2.11
%
Medium-term notes(2)
2018 - 2026
 
66,297

 
1.50

 
2018 - 2026
 
75,901

 
1.41

Other(3)
2018 - 2038
 
6,725

 
4.74

 
2018 - 2038
 
7,421

 
4.84

Total senior fixed
 
 
184,212

 
2.12

 
 
 
206,863

 
1.95

Senior floating:
 
 
 
 
 
 
 
 
 
 
 
Medium-term notes(2)
2019 - 2020
 
2,675

 
2.05

 
2018 - 2020
 
8,425

 
1.36

Connecticut Avenue Securities(4)
2023 - 2031
 
25,657

 
5.73

 
2023 - 2030
 
22,527

 
5.18

Other(5)
2020 - 2037
 
347

 
7.59

 
2020 - 2037
 
376

 
6.36

Total senior floating
 
 
28,679

 
5.41

 
 
 
31,328

 
4.14

Subordinated debentures
2019
 
5,486

 
9.96

 
2019
 
5,106

 
9.93

Secured borrowings(6)
2021 - 2022
 
57

 
1.75

 
2021 - 2022
 
78

 
1.70

Total long-term debt of Fannie Mae(7)
 
 
218,434

 
2.75

 
 
 
243,375

 
2.40

Debt of consolidated trusts
2018 - 2058
 
3,127,414

 
2.92

 
2018 - 2057
 
3,052,923

 
2.80

Total long-term debt
 
 
$
3,345,848

 
2.91
%
 
 
 
$
3,296,298

 
2.77
%
__________
(1) 
Includes the effects of discounts, premiums and other cost basis adjustments.
(2) 
Includes long-term debt with an original contractual maturity of greater than 1 year and up to 10 years, excluding zero-coupon debt.
(3) 
Includes other long-term debt with an original contractual maturity of greater than 10 years and foreign exchange bonds.
(4) 
Credit risk-sharing securities that transfer a portion of the credit risk on specified pools of single-family mortgage loans to the investors in these securities, a portion of which is reported at fair value.
(5) 
Consists of structured debt instruments that are reported at fair value.
(6) 
Represents our remaining liability resulting from the transfer of financial assets from our condensed consolidated balance sheets that did not qualify as a sale under the accounting guidance for the transfer of financial instruments.
(7) 
Includes unamortized discounts and premiums, other cost basis adjustments and fair value adjustments of $399 million and $752 million as of September 30, 2018 and December 31, 2017, respectively.
8.  Derivative Instruments
Derivative instruments are an integral part of our strategy in managing interest rate risk. Derivative instruments may be privately-negotiated, bilateral contracts, or they may be listed and traded on an exchange. We refer to our derivative transactions made pursuant to bilateral contracts as our over-the-counter (“OTC”) derivative transactions and our derivative transactions accepted for clearing by a derivatives clearing organization as our cleared derivative transactions. We typically do not settle the notional amount of our risk management derivatives; rather, notional amounts provide the basis for calculating actual payments or settlement amounts. The derivatives we use for interest rate risk management purposes consist primarily of interest rate swaps and interest rate options.
We enter into various forms of credit risk sharing agreements, including credit risk transfer transactions, swap credit enhancements and mortgage insurance contracts, that we account for as derivatives. The majority of our credit-related derivatives are credit risk transfer transactions, whereby a portion of the credit risk associated with losses on a reference pool of mortgage loans is transferred to a third party.

Fannie Mae (In conservatorship) Third Quarter 2018 Form 10-Q
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