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Fair Value Option (Tables)
9 Months Ended
Sep. 30, 2020
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 ValueUnpaid Principal BalanceFair Value Over (Under) Unpaid Principal Balance
 (in millions)
At September 30, 2020
Student loans held for investment$34 $36 $(2)
Commercial loans held for sale41 48 (7)
Fixed rate long-term debt995 741 254 
Hybrid instruments:
Structured deposits4,723 4,471 252 
Structured notes8,793 8,147 646 
At December 31, 2019
Commercial loans held for sale$178 $189 $(11)
Securities sold under repurchase agreements373 373 — 
Fixed rate long-term debt959 741 218 
Hybrid instruments:
Structured deposits7,209 7,491 (282)
Structured notes9,388 8,187 1,201 
Components of Gain on Instruments at Fair Value and Related Derivatives The following table summarizes the components of gain (loss) on instruments designated at fair value and related derivatives reflected in the consolidated statement of income (loss) for the three and nine months ended September 30, 2020 and 2019:
Loans and Loans Held for SaleLong-Term
Debt
Hybrid
Instruments
Total
(in millions)
Three Months Ended September 30, 2020
Interest rate and other components(1)
$ $18 $(292)$(274)
Credit risk component(2)
(4)  (4)
Total mark-to-market on financial instruments designated at fair value
(4)18 (292)(278)
Mark-to-market on related derivatives (24)307 283 
Net realized gain on related long-term debt derivatives
 10  10 
Gain (loss) on instruments designated at fair value and related derivatives
$(4)$4 $15 $15 
Three Months Ended September 30, 2019
Interest rate and other components(1)
$— $(115)$(98)$(213)
Credit risk component(2)
(1)— — (1)
Total mark-to-market on financial instruments designated at fair value
(1)(115)(98)(214)
Mark-to-market on related derivatives— 89 95 184 
Net realized gain on related long-term debt derivatives
— 11 — 11 
Gain (loss) on instruments designated at fair value and related derivatives
$(1)$(15)$(3)$(19)
Nine Months Ended September 30, 2020
Interest rate and other components(1)
$ $(114)$198 $84 
Credit risk component(2)(3)
(53)  (53)
Total mark-to-market on financial instruments designated at fair value
(53)(114)198 31 
Mark-to-market on related derivatives37 126 (203)(40)
Net realized gain on related long-term debt derivatives
 24  24 
Gain (loss) on instruments designated at fair value and related derivatives
$(16)$36 $(5)$15 
Nine Months Ended September 30, 2019
Interest rate and other components(1)
$— $(284)$(1,532)$(1,816)
Credit risk component(2)
— — 
Total mark-to-market on financial instruments designated at fair value
(284)(1,532)(1,814)
Mark-to-market on related derivatives— 225 1,514 1,739 
Net realized gain on related long-term debt derivatives
— 30 — 30 
Gain (loss) on instruments designated at fair value and related derivatives
$$(29)$(18)$(45)
(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 other comprehensive income.
(3)During the nine months ended September 30, 2020, the loss in the credit risk component for loans and loans held for sale was attributable to the widening of credit spreads associated with certain commercial loans held for sale which were impacted by the COVID-19 pandemic.