this is normal for an ongoing reinsurer
debt comes due and new debt is issued
as long at the rates (cash out in interest owed) is lower then the old rates (cash out in interest on the old paper) --- this reduces in small measure the interest cost that FNMA has to carry
but the most important part to keep in mind is that 5B for these guys is tiny - yes tiny and selling a bond incurrs an obligation to pay it back and interest and by iteself adds no proft (other then the difference between old interest owed and new ........... which in general is lowering some of the FNMA costs for the last 24 -36 months)
FAR MORE important is how much of the paper it insured and or holds is going to default - and did FNMA hopeully over estimate default rate - which would then mean they can free up Billions of reserved dollars to lower their obligtion to the GOV by paying down principal on the GOV infusion (which is held by the GOV not as bonds but THE sr pfds)
Yes it does and if they do it every week, then they will soon pay back everything they owe, get relisted on the stock exchange and start paying $1.00 quarterly dividends. On the other hand, perhaps they will use it to pay back the other notes that are now due. Money has to come from somewhere. My bet is on the latter. If you would like to see how this works, then send me your money now and I will gladly pay you back in 5 years (does that sound like someone out of Popeye?).