Fair Value Option (Tables)

3 Months Ended

Mar. 31, 2024

Summary of Fair Value and Unpaid Principal Balance for Items Accounted for Under FVO

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, 2024
Student loans held for investment	$	14	$	16	$	(2)
Commercial loans held for sale	264		272		(8)

Client share repurchase asset	661		661		—

Fixed rate long-term debt	756		741		15
Hybrid instruments:
Structured deposits	2,084		2,057		27
Structured notes	6,114		5,741		373
Client share repurchase liability	661		661		—
At December 31, 2023
Student loans held for investment	$	15	$	17	$	(2)
Commercial loans held for sale	250		256		(6)
Client share repurchase asset	10		10		—


Fixed rate long-term debt	749		741		8
Hybrid instruments:
Structured deposits	1,821		1,816		5
Structured notes	6,790		6,418		372
Client share repurchase liability	10		10		—

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 for the three months ended March 31, 2024 and 2023:


	Loans and Loans Held for Sale		Long-Term Debt		Hybrid Instruments		Total
	(in millions)
















Three Months Ended March 31, 2024
Interest rate and other components(1)	$	—	$	23	$	(141)	$	(118)
Credit risk component(2)	1		—		—		1
Total mark-to-market on financial instruments designated at fair value	1		23		(141)		(117)
Mark-to-market on related derivatives	—		(27)		125		98
Net realized gain (loss) on related long-term debt derivatives	—		(1)		—		(1)
Gain (loss) on instruments designated at fair value and related derivatives	$	1	$	(5)	$	(16)	$	(20)

Three Months Ended March 31, 2023
Interest rate and other components(1)	$	—	$	(21)	$	(450)	$	(471)
Credit risk component(2)	(6)		—		—		(6)
Total mark-to-market on financial instruments designated at fair value	(6)		(21)		(450)		(477)
Mark-to-market on related derivatives	—		23		431		454
Net realized gain on related long-term debt derivatives	—		1		—		1
Gain (loss) on instruments designated at fair value and related derivatives	$	(6)	$	3	$	(19)	$	(22)

(1)As it relates to hybrid instruments, interest rate and other components primarily includes interest rate 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 (loss).