Trading Assets and Liabilities

Trading assets and liabilities consisted of the following.



	March 31, 2014		December 31, 2013
	(in millions)
Trading assets:
U.S. Treasury	$	2,140	$	1,344
U.S. Government agency issued or guaranteed	17		19
U.S. Government sponsored enterprises⁽¹⁾	64		159
Obligations of U.S. states and political subdivisions	25		25
Asset backed securities	484		481
Corporate and foreign bonds	10,265		9,099
Other securities	21		25
Precious metals	10,332		11,751
Derivatives	3,988		5,991
	$	27,336	$	28,894
Trading liabilities:
Securities sold, not yet purchased	$	434	$	308
Payables for precious metals	3,926		3,826
Derivatives	4,989		6,741
	$	9,349	$	10,875


⁽¹⁾	Includes mortgage backed securities of $38 million and $133 million issued or guaranteed by the Federal National Mortgage Association ("FNMA") and $26 million and $26 million issued or guaranteed by the Federal Home Loan Mortgage Corporation ("FHLMC") at March 31, 2014 and December 31, 2013, respectively.

At March 31, 2014 and December 31, 2013, the fair value of derivatives included in trading assets has been reduced by $3,247 million and $3,870 million, respectively, relating to amounts recognized for the obligation to return cash collateral received under master netting agreements with derivative counterparties.

At March 31, 2014 and December 31, 2013, the fair value of derivatives included in trading liabilities has been reduced by $1,945 million and $2,116 million, respectively, relating to amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.

See Note 9, "Derivative Financial Instruments," for further information on our trading derivatives and related collateral.