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Discount Notes
Overview
Fannie Mae's Discount Notes are unsecured general obligations that are issued in book-entry form through the U.S. Federal Reserve Banks. Discount Notes have maturities ranging from overnight to 360 days from the date of issuance, excluding three- and six-month maturities, and are available in minimum amounts of $1,000 and increments of $1,000. Three- and six-month maturities are issued through the Benchmark Bills program. There are no periodic payments of interest on Discount Notes. They are sold at a discount from the principal amount and mature at par.
Discount Notes are offered each business day through a Selling Group of securities dealers and dealer banks. The commitment of the Discount Notes Selling Group to make active markets in these securities, combined with the large volume and broad distribution of issuance, has made Fannie Mae's Discount Notes significantly more liquid than other agencies' discount note programs and corporate commercial paper programs. Discount Notes are available on a cash-, regular-, or skip-day settlement basis.
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Last Revised: November 12, 2009
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