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Fair Value Option (Tables)
3 Months Ended
Mar. 31, 2018
Fair Value Option [Abstract]  
Fair Value, Option, Quantitative Disclosures
The following table summarizes the fair value and unpaid principal balance for items we account for under FVO:
 
Fair Value
 
Unpaid Principal Balance
 
Fair Value over (under) Unpaid Principal Balance
 
(in millions)
At March 31, 2018
 
 
 
 
 
Commercial loans held for sale
$
338

 
$
342

 
$
(4
)
Securities purchased under resale agreements
342

 
342

 

Securities sold under repurchase agreements
1,833

 
1,832

 
1

Fixed rate long-term debt
2,140

 
1,750

 
390

Hybrid instruments:
 
 
 
 
 
Structured deposits
7,832

 
7,990

 
(158
)
Structured notes
10,596

 
9,906

 
690

At December 31, 2017
 
 
 
 
 
Commercial loans held for sale
$
471

 
$
483

 
$
(12
)
Securities purchased under resale agreements
80

 
80

 

Securities sold under repurchase agreements
2,032

 
2,031

 
1

Fixed rate long-term debt
2,230

 
1,750

 
480

Hybrid instruments:
 
 
 
 
 
Structured deposits
7,693

 
7,685

 
8

Structured notes
10,656

 
9,530

 
1,126

Components of Gain on Instruments at Fair Value and Related Derivatives
The following table summarizes the components of gain on instruments designated at fair value and related derivatives reflected in the consolidated statement of income (loss) for the three months ended March 31, 2018 and 2017:
 
Loans
 
Securities Purchased Under Resale Agreements
 
Securities Sold Under Repurchase Agreements
 
Long-Term
Debt
 
Hybrid
Instruments
 
Total
 
(in millions)
Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Interest rate and other components(1)
$

 
$

 
$
(1
)
 
$
88

 
$
442

 
$
529

Credit risk component
4

 

 

 

 

 
4

Total mark-to-market on financial instruments designated at fair value
4

 

 
(1
)
 
88

 
442

 
533

Mark-to-market on the related derivatives

 

 

 
(77
)
 
(439
)
 
(516
)
Net realized gain on the related long-term debt derivatives

 

 

 
13

 

 
13

Gain on instruments designated at fair value and related derivatives
$
4

 
$

 
$
(1
)
 
$
24

 
$
3

 
$
30

 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Interest rate and other components(1)
$

 
$
6

 
$
1

 
$
19

 
$
(363
)
 
$
(337
)
Credit risk component
(1
)
 

 

 

 

 
(1
)
Total mark-to-market on financial instruments designated at fair value
(1
)
 
6

 
1

 
19

 
(363
)
 
(338
)
Mark-to-market on the related derivatives

 

 

 
(24
)
 
381

 
357

Net realized gain on the related long-term debt derivatives

 

 

 
15

 

 
15

Gain on instruments designated at fair value and related derivatives
$
(1
)
 
$
6

 
$
1

 
$
10

 
$
18

 
$
34

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
As it relates to hybrid instruments, interest rate and other components primarily includes interest rate, foreign exchange and equity contract risks.
(2) 
The fair value movement on fair value option liabilities attributable to our own credit spread is recorded in common equity as a component of other comprehensive income (loss).