Trading Assets and Liabilities

6 Months Ended

Jun. 30, 2023

Trading Assets And Liabilities [Abstract]

Trading Assets and Liabilities

Trading Assets and Liabilities

Trading assets and liabilities consisted of the following:

	June 30, 2023		December 31, 2022
	(in millions)
Trading assets:
U.S. Treasury	$	2,791	$	1,670
U.S. Government agency issued or guaranteed	2		—
U.S. Government sponsored enterprises	762		369
Foreign bonds	1,649		6,391
Equity securities	10,261		7,855
Precious metals	2,605		3,831
Derivatives, net	1,321		1,614
Total trading assets	$	19,391	$	21,730
Trading liabilities:
Securities sold, not yet purchased	$	1,267	$	837
Derivatives, net	1,432		1,966
Total trading liabilities	$	2,699	$	2,803

At June 30, 2023 and December 31, 2022, the fair value of derivatives included in trading assets is net of $2,299 million and $2,653 million, respectively, relating to amounts recognized for the obligation to return cash collateral received under master netting agreements with derivative counterparties.

At both June 30, 2023 and December 31, 2022, the fair value of derivatives included in trading liabilities is net of $1,180 million 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, totaled $36 million and $70 million during the three and six months ended June 30, 2023, respectively, compared with $42 million and $90 million during the three and six months ended June 30, 2022, respectively. Trading security positions are primarily held as economic hedges of derivative products issued to our clients.