Trading Assets and Liabilities

9 Months Ended

Sep. 30, 2021

Trading Assets And Liabilities [Abstract]

Trading assets and liabilities consisted of the following:


	September 30, 2021		December 31, 2020
	(in millions)
Trading assets:
U.S. Treasury	$	2,352	$	5,145
U.S. Government agency issued or guaranteed	45		—
U.S. Government sponsored enterprises	246		192

Asset-backed securities	—		143
Foreign bonds	768		7,971
Equity securities	13,287		6,043
Precious metals	3,316		4,989
Derivatives, net	1,971		2,801
Total trading assets	$	21,985	$	27,284
Trading liabilities:
Securities sold, not yet purchased	$	947	$	727
Payables for precious metals	90		2,312
Derivatives, net	1,633		2,358
Total trading liabilities	$	2,670	$	5,397

At September 30, 2021 and December 31, 2020, the fair value of derivatives included in trading assets is net of $2,310 million and $2,763 million, respectively, relating to amounts recognized for the obligation to return cash collateral received under master netting agreements with derivative counterparties.

At September 30, 2021 and December 31, 2020, the fair value of derivatives included in trading liabilities is net of $1,518 million and $3,377 million, respectively, relating to amounts recognized for the right to reclaim cash collateral paid under master netting agreements with derivative counterparties.

See Note 10, "Derivative Financial Instruments," for further information on our trading derivatives and related collateral.

Dividend income on equity securities held for trading, which is recorded in interest income in the consolidated statement of income (loss), totaled $44 million and $108 million during the three and nine months ended September 30, 2021, respectively, compared with $21 million and $50 million during the three and nine months ended September 30, 2020, respectively. Trading security positions are held as economic hedges of derivative products issued to our clients.