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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2022
Derivative Financial Instruments
6.    Derivative Financial Instruments
Blackstone and the consolidated Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment and business purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk exposure against the effects of a portion of its non-U.S. dollar denominated currency net investments. As a result of the use of derivative contracts, Blackstone and the consolidated Blackstone Funds are exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, Blackstone and the consolidated Blackstone Funds enter into contracts with certain major financial institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.
 
Freestanding Derivatives
Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts.
The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts.
 
                                                                                                                                                                                                         
   
December 31, 2022
  
December 31, 2021
   
Assets
  
Liabilities
  
Assets
  
Liabilities
   
Notional
  
Fair
Value
  
Notional
  
Fair
Value
  
Notional
  
Fair
Value
  
Notional
  
Fair
Value
Freestanding Derivatives
                                                                
Blackstone
                                                                
Interest Rate Contracts
  
$
789,540
 
  
$
188,043
 
  
$
621,700
 
  
$
83,331
 
  
$
609,132
 
  
$
143,349
 
  
$
692,442
 
  
$
138,677
 
Foreign Currency Contracts
  
 
541,238
 
  
 
8,040
 
  
 
190,774
 
  
 
3,542
 
  
 
217,161
 
  
 
1,858
 
  
 
572,643
 
  
 
6,143
 
Credit Default Swaps
  
 
2,007
 
  
 
384
 
  
 
8,768
 
  
 
1,309
 
  
 
2,007
 
  
 
194
 
  
 
9,916
 
  
 
1,055
 
Total Return Swaps
  
 
42,233
 
  
 
6,210
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
Equity Options
  
 
—
 
  
 
—
 
  
 
996,592
 
  
 
48,581
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
1,375,018
 
  
 
202,677
 
  
 
1,817,834
 
  
 
136,763
 
  
 
828,300
 
  
 
145,401
 
  
 
1,275,001
 
  
 
145,875
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Investments of
                                                                
Consolidated Blackstone Funds
                                                                
Interest Rate Contracts
  
 
931,752
 
  
 
74,926
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
14,000
 
  
 
764
 
Foreign Currency Contracts
  
 
—
 
  
 
—
 
  
 
5,133
 
  
 
284
 
  
 
20,764
 
  
 
339
 
  
 
54,300
 
  
 
370
 
Credit Default Swaps
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
3,401
 
  
 
321
 
  
 
22,865
 
  
 
799
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
931,752
 
  
 
74,926
 
  
 
5,133
 
  
 
284
 
  
 
24,165
 
  
 
660
 
  
 
91,165
 
  
 
1,933
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
$
2,306,770
 
  
$
277,603
 
  
$
1,822,967
 
  
$
137,047
 
  
$
852,465
 
  
$
146,061
 
  
$
1,366,166
 
  
$
147,808
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
The table below summarizes the impact to the Consolidated Statements of Operations from derivative financial instruments:
 
                                                                            
    
Year Ended December 31,
    
2022
  
2021
  
2020
Freestanding Derivatives
                         
Realized Gains (Losses)
                         
Interest Rate Contracts
   
$
15,319
 
  
$
1,727
 
  
$
(7,643
) 
Foreign Currency Contracts
   
 
(8,520
) 
  
 
(1,152
) 
  
 
1,105
 
Credit Default Swaps
   
 
(231
) 
  
 
(1,488
) 
  
 
(109
) 
Total Return Swaps
   
 
1,654
 
  
 
(1,254
) 
  
 
(1,875
) 
Other
   
 
—
 
  
 
(40
) 
  
 
14
 
    
 
 
 
  
 
 
 
  
 
 
 
    
 
8,222
 
  
 
(2,207
) 
  
 
(8,508
) 
    
 
 
 
  
 
 
 
  
 
 
 
Net Change in Unrealized Gains (Losses)
                         
Interest Rate Contracts
   
 
167,706
 
  
 
89,702
 
  
 
(117,145
) 
Foreign Currency Contracts
   
 
9,666
 
  
 
608
 
  
 
1,231
 
Credit Default Swaps
   
 
73
 
  
 
1,112
 
  
 
(1,777
) 
Total Return Swaps
   
 
5,290
 
  
 
2,130
 
  
 
(1,683
) 
Equity Options
   
 
48,581
 
  
 
—
 
  
 
—
 
Other
   
 
—
 
  
 
(20
) 
  
 
57
 
    
 
 
 
  
 
 
 
  
 
 
 
    
 
231,316
 
  
 
93,532
 
  
 
(119,317
) 
    
 
 
 
  
 
 
 
  
 
 
 
    
$
239,538
 
  
$
91,325
 
  
$
(127,825
) 
    
 
 
 
  
 
 
 
  
 
 
 
As of December 31, 2022, 2021 and 2020, Blackstone had not designated any derivatives as fair value, cash flow or net investment hedges.