| Collateralized Transactions |
6. Collateralized Transactions The Firm enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers’ needs and to finance its inventory positions. For further discussion of the Firm’s collateralized transactions, see Note 6 to the financial statements in the 2017 Form 10-K. | Offsetting of Certain Collateralized Transactions | | | | | | | | | | | | | | | | | | At March 31, 2018 | | $ in millions | | Gross Amounts | | Amounts Offset | | Net Amounts Presented | | Amounts Not Offset1 | | Net Amounts | | Assets | | | | | | | | | | | | Securities purchased | | | | | | | | | | | | under agreements | | | | | | | | | | | | to resell | $ | 185,498 | $ | (105,252) | $ | 80,246 | $ | (74,843) | $ | 5,403 | | Securities borrowed | | 149,347 | | (13,512) | | 135,835 | | (132,271) | | 3,564 | | Liabilities | | | | | | | | | | | | Securities sold | | | | | | | | | | | | under agreements | | | | | | | | | | | | to repurchase | $ | 156,827 | $ | (105,252) | $ | 51,575 | $ | (45,207) | $ | 6,368 | | Securities loaned | | 27,068 | | (13,512) | | 13,556 | | (13,336) | | 220 | | Net amounts for which master netting agreements are not in place or may not | | be legally enforceable | | Securities purchased under agreements to resell | $ | 5,212 | | Securities borrowed | | | | | | | | | | 669 | | Securities sold under agreements to repurchase | | 5,118 | | Securities loaned | | | | | | | | | | 194 |
| | | | At December 31, 2017 | | $ in millions | | Gross Amounts | | Amounts Offset | | Net Amounts Presented | | Amounts Not Offset1 | | Net Amounts | | Assets | | | | | | | | | | | | Securities purchased | | | | | | | | | | | under agreements | | | | | | | | | | | to resell | $ | 199,044 | $ | (114,786) | $ | 84,258 | $ | (78,009) | $ | 6,249 | | Securities borrowed | | 133,431 | | (9,421) | | 124,010 | | (119,358) | | 4,652 | | Liabilities | | | | | | | | | | | | Securities sold | | | | | | | | | | | | under agreements | | | | | | | | | | | to repurchase | $ | 171,210 | $ | (114,786) | $ | 56,424 | $ | (48,067) | $ | 8,357 | | Securities loaned | | 23,014 | | (9,422) | | 13,592 | | (13,271) | | 321 | | Net amounts for which master netting agreements are not in place or may not | | be legally enforceable | | Securities purchased under agreements to resell | $ | 5,687 | | Securities borrowed | | | | | | | | | | 572 | | Securities sold under agreements to repurchase | | 6,945 | | Securities loaned | | | | | | | | | 307 |
1. Amounts relate to master netting agreements that have been determined by the Firm to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. For information related to offsetting of derivatives, see Note 4. | Maturities and Collateral Pledged | | | Gross Secured Financing Balances by Remaining Contractual Maturity | | | | | | At March 31, 2018 | | $ in millions | | Overnight and Open | | Less than 30 Days | | 30-90 Days | | Over 90 Days | | Total | | Securities sold under | | | | | | | | | | | | agreements to | | | | | | | | | | | | repurchase | $ | 39,192 | $ | 49,822 | $ | 27,926 | $ | 39,887 | $ | 156,827 | | Securities loaned | | 16,869 | | 603 | | 2,045 | | 7,551 | | 27,068 | | Total included in the | | | | | | | | | | | | offsetting disclosure | $ | 56,061 | $ | 50,425 | $ | 29,971 | $ | 47,438 | $ | 183,895 | | Trading liabilities― | | | | | | | | | | | | Obligation to return | | | | | | | | | | | | securities received | | | | | | | | | | | | as collateral | | 18,136 | | — | | 610 | | — | | 18,746 | | Total | $ | 74,197 | $ | 50,425 | $ | 30,581 | $ | 47,438 | $ | 202,641 |
| | | | At December 31, 2017 | | $ in millions | | Overnight and Open | | Less than 30 Days | | 30-90 Days | | Over 90 Days | | Total | | Securities sold under | | | | | | | | | | | | agreements to | | | | | | | | | | | | repurchase | $ | 41,332 | $ | 66,593 | $ | 28,682 | $ | 34,603 | $ | 171,210 | | Securities loaned | | 12,130 | | 873 | | 1,577 | | 8,434 | | 23,014 | | Total included in the | | | | | | | | | | | | offsetting disclosure | $ | 53,462 | $ | 67,466 | $ | 30,259 | $ | 43,037 | $ | 194,224 | | Trading liabilities― | | | | | | | | | | | | Obligation to return | | | | | | | | | | | | securities received | | | | | | | | | | | | as collateral | | 22,555 | | — | | — | | — | | 22,555 | | Total | $ | 76,017 | $ | 67,466 | $ | 30,259 | $ | 43,037 | $ | 216,779 |
| Gross Secured Financing Balances by Class of Collateral Pledged | | | | | | | | | $ in millions | | At March 31, 2018 | | At December 31, 2017 | | Securities sold under agreements to repurchase | | U.S. government and agency securities | $ | 37,361 | $ | 43,346 | | State and municipal securities | | 1,643 | | 2,451 | | Other sovereign government obligations | | 78,844 | | 87,141 | | ABS | | 2,204 | | 1,130 | | Corporate and other debt | | 10,063 | | 7,737 | | Corporate equities | | 25,893 | | 28,497 | | Other | | 819 | | 908 | | Total | $ | 156,827 | $ | 171,210 | | Securities loaned | | | | | | U.S. government and agency securities | $ | 6 | $ | 81 | | Other sovereign government obligations | | 14,077 | | 9,489 | | Corporate and other debt | | 28 | | 14 | | Corporate equities | | 12,770 | | 13,174 | | Other | | 187 | | 256 | | Total | $ | 27,068 | $ | 23,014 | | Total included in the offsetting disclosure | $ | 183,895 | $ | 194,224 | | Trading liabilities―Obligation to return securities received as collateral | | Corporate equities | $ | 18,746 | $ | 22,555 | | Total | $ | 202,641 | $ | 216,779 |
Assets Pledged The Firm pledges its trading assets and loans to collateralize securities sold under agreements to repurchase, securities loaned, other secured financings and derivatives. Counterparties may or may not have the right to sell or repledge the collateral. Pledged financial instruments that can be sold or repledged by the secured party are identified as Trading assets (pledged to various parties) in the balance sheets. | Carrying Value of Assets Loaned or Pledged without | | Counterparty Right to Sell or Repledge | | | | | | | | | $ in millions | | At March 31, 2018 | | At December 31, 2017 | | Trading assets | $ | 34,590 | $ | 31,324 | | Loans (gross of allowance for loan losses) | | 342 | | 228 | | Total | $ | 34,932 | $ | 31,552 |
Collateral Received The Firm receives collateral in the form of securities in connection with securities purchased under agreements to resell, securities borrowed, securities-for-securities transactions, derivative transactions, customer margin loans and securities-based lending. In many cases, the Firm is permitted to sell or repledge these securities held as collateral and use the securities to secure securities sold under agreements to repurchase, to enter into securities lending and derivative transactions or for delivery to counterparties to cover short positions | Fair Value of Collateral Received with Right to Sell or Repledge | | | | | | | | | $ in millions | | At March 31, 2018 | | At December 31, 2017 | | Collateral received with right to sell or repledge | $ | 597,886 | $ | 599,244 | | Collateral that was sold or repledged | | 471,985 | | 475,113 |
Customer Margin Lending and Other | $ in millions | | At March 31, 2018 | | At December 31, 2017 | | Net customer receivables representing | | | | | | margin loans | $ | 34,382 | $ | 32,112 |
The Firm provides margin lending arrangements which allow the client to borrow against the value of qualifying securities. Margin loans are included within Customer and other receivables in the balance sheets. Under these agreements and transactions, the Firm receives collateral, including U.S. government and agency securities, other sovereign government obligations, corporate and other debt, and corporate equities. Customer receivables generated from margin lending activities are collateralized by customer-owned securities held by the Firm. The Firm monitors required margin levels and established credit terms daily and, pursuant to such guidelines, requires customers to deposit additional collateral, or reduce positions, when necessary. For a further discussion of the Firm’s margin lending activities, see Note 6 to the financial statements in the 2017 Form 10-K. The Firm has additional secured liabilities. For a further discussion of other secured financings, see Note 10. | Restricted Cash and Segregated Securities | | | | | | | | | $ in millions | | At March 31, 2018 | | At December 31, 2017 | | Restricted cash | $ | 35,291 | $ | 34,231 | | Segregated securities1 | | 18,917 | | 20,549 | | Total | $ | 54,208 | $ | 54,780 |
- Securities segregated under federal regulations for the Firm’s U.S. broker-dealers are sourced from Securities purchased under agreements to resell and Trading assets in the balance sheets.
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