Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional exposure of derivative instruments

	September 30, 2021				December 31, 2020
	Long Notional Exposure		Short Notional Exposure		Long Notional Exposure		Short Notional Exposure
		(in millions)
Primary underlying risk:
Equity contracts	$	1,411	$	5,086	$	—	$	8,623
Credit contracts(1)		—		2,153		—		2,099

(1) The short notional amount on our credit default swap positions was approximately $6.5 billion at September 30, 2021. However, because credit spreads cannot compress below zero, our downside short notional exposure to loss is approximately $2.2 billion as of September 30, 2021. The short notional amount on our credit default swap positions was approximately $6.3 billion as of December 31, 2020. However, because credit spreads cannot compress below zero, our downside short notional exposure to loss is approximately $2.1 billion as of December 31, 2020.

Fair value and income recognized for derivatives not designated as hedging instruments

	Derivative Assets				Derivative Liabilities
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
		(in millions)
Equity contracts	$	30	$	4	$	839	$	852
Credit contracts		1,126		1,012		—		1
Sub-total		1,156		1,016		839		853
Netting across contract types(1)		(363)		(231)		(363)		(231)
Total(1)	$	793	$	785	$	476	$	622

(1) Excludes netting of cash collateral received and posted. The total collateral posted at September 30, 2021 and December 31, 2020 was $1,541 million and $872 million, respectively, across all counterparties, which are included in cash held at consolidated affiliated partnerships and restricted cash in the condensed consolidated balance sheets.

The following table presents the amount of gain (loss) recognized in the condensed consolidated statements of operations for our Investment segment’s derivatives not designated as hedging instruments:

	Gain (Loss) Recognized in Income(1)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in millions)
Equity contracts	$	(54)	$	(657)	$	(688)	$	(886)
Credit contracts		122		121		120		1,511
	$	68	$	(536)	$	(568)	$	625

(1) Gains (losses) recognized on derivatives are classified in net gain (loss) from investment activities in our condensed consolidated statements of operations for our Investment segment.