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Trading Assets and Liabilities and Derivatives Trading Assets and Liabilities and Derivatives
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Trading Assets and Liabilities and Derivatives [Text Block] NOTE 5 - TRADING ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS

The fair values of the components of trading assets and liabilities and derivative instruments are presented in the following table:
(Dollars in millions)
December 31, 2018
 
December 31, 2017
Trading Assets and Derivative Instruments:
 
 
 
U.S. Treasury securities

$262

 

$157

Federal agency securities
188

 
395

U.S. states and political subdivisions
54

 
61

MBS - agency
860

 
700

Corporate and other debt securities
700

 
655

CP
190

 
118

Equity securities
73

 
56

Derivative instruments 1
639

 
802

Trading loans 2
2,540

 
2,149

Total trading assets and derivative instruments

$5,506

 

$5,093

 
 
 
 
Trading Liabilities and Derivative Instruments:
 
 
 
U.S. Treasury securities

$801

 

$577

MBS - agency
3

 
—

Corporate and other debt securities
385

 
289

Equity securities
5

 
9

Derivative instruments 1
410

 
408

Total trading liabilities and derivative instruments

$1,604

 

$1,283

1 Amounts include the impact of offsetting cash collateral received from and paid to the same derivative counterparties, and the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists.
2 Includes loans related to TRS.

Various trading and derivative instruments are used as part of the Company’s overall balance sheet management strategies and to support client requirements executed through the Bank and/or STRH, a broker/dealer subsidiary of the Company. The Company manages the potential market volatility associated with trading instruments by using appropriate risk management strategies. The size, volume, and nature of the trading products and derivative instruments can vary based on economic conditions as well as client-specific and Company-specific asset or liability positions.
Product offerings to clients include debt securities, loans traded in the secondary market, equity securities, derivative contracts, and other similar financial instruments. Other trading-
related activities include acting as a market maker for certain debt and equity security transactions, derivative instrument transactions, and foreign exchange transactions. The Company also uses derivatives to manage its interest rate and market risk from non-trading activities. The Company has policies and procedures to manage market risk associated with client trading and non-trading activities, and assumes a limited degree of market risk by managing the size and nature of its exposure. For valuation assumptions and additional information related to the Company's trading products and derivative instruments, see Note 19, “Derivative Financial Instruments,” and the “Trading Assets and Derivative Instruments and Investment Securities” section of Note 20, “Fair Value Election and Measurement.”
Pledged trading assets are presented in the following table:
(Dollars in millions)
December 31, 2018
 
December 31, 2017
Pledged trading assets to secure repurchase agreements 1

$1,418

 

$1,016

Pledged trading assets to secure certain derivative agreements
22

 
72

Pledged trading assets to secure other arrangements
40

 
41

1 Repurchase agreements secured by collateral totaled $1.4 billion and $975 million at December 31, 2018 and 2017, respectively.