Table 7.1 - Investment Securities


(In millions)	December 31, 2025	December 31, 2024
Trading securities	$82,096	$51,872
Available-for-sale securities	3,316	3,899
Total fair value of investment securities	$85,412	$55,771

We currently classify and account for our securities as either available-for-sale or trading. Securities classified as trading are reported at fair value with changes in fair value included in investment gains, net, in our consolidated statements of income. Securities classified as available-for-sale are reported at fair value with changes in fair value included in AOCI, net of taxes. See Note 16 for additional information on how we determine the fair value of securities.

We record purchases and sales of non-mortgage-related securities on the trade date. We record purchases and sales of mortgage-related securities on the expected settlement date, with a corresponding derivative recorded on the trade date.

We recognize interest income using the effective interest method, which considers the contractual terms of the security. Deferred items, including premiums, discounts, and other basis adjustments, are amortized into interest income over the contractual lives of the securities.

We recognize interest income using the prospective effective interest method for securities that can contractually be prepaid or otherwise settled in such a way that we may not recover substantially all of our recorded investment. Under this method, we recognize as interest income, over the expected life of the securities, the excess of the cash flows expected to be collected over the securities' carrying value. We update our estimates of expected cash flows periodically and recognize changes in the calculated effective interest rate on a prospective basis.

We classify the cash flows related to both available-for-sale and trading securities as investing activities because we hold these securities for investment purposes. In cases where the transfer of a security represents a secured borrowing, we classify the related cash flows as financing activities.

The table below presents the fair values of our trading securities by major security type. Our non-mortgage-related securities primarily consist of investments in U.S. Treasury securities.

Table 7.2 - Trading Securities


(In millions)	December 31, 2025	December 31, 2024
Mortgage-related securities	$10,932	$9,158
Non-mortgage-related securities	71,164	42,714
Total fair value of trading securities	$82,096	$51,872

Table 7.3 - Net Trading Gains (Losses)


	Year Ended December 31,
(In millions)	2025	2024	2023
Net trading gains (losses)	$639	$256	$440
Less: Net trading gains (losses) on securities sold	88	38	105
Net trading gains (losses) related to securities still held at period end	$551	$218	$335

At both December 31, 2025 and December 31, 2024, all available-for-sale securities were mortgage-related securities.

The table below provides details of the securities classified as available-for-sale on our consolidated balance sheets.


	December 31, 2025
	Amortized Cost Basis	Gross Unrealized Gains in Other Comprehensive Income	Gross Unrealized Losses in Other Comprehensive Income	Fair Value	Accrued Interest Receivable
(In millions)
Agency mortgage-related securities	$2,726	$16	($40)	$2,702	$6
Other mortgage-related securities	423	209	(18)	614	7
Total available-for-sale securities	$3,149	$225	($58)	$3,316	$13


	December 31, 2024
	Amortized Cost Basis	Gross Unrealized Gains in Other Comprehensive Income	Gross Unrealized Losses in Other Comprehensive Income	Fair Value	Accrued Interest Receivable
(In millions)
Agency mortgage-related securities	$3,528	$4	($100)	$3,432	$7
Other mortgage-related securities	287	194	(14)	467	3
Total available-for-sale securities	$3,815	$198	($114)	$3,899	$10

The fair value of our available-for-sale securities held at December 31, 2025 scheduled to contractually mature after five years through ten years was $1.0 billion, with an additional $1.4 billion scheduled to contractually mature after ten years.

The table below presents available-for-sale securities in a gross unrealized loss position and whether such securities have been in an unrealized loss position for less than 12 months, or 12 months or greater.

Table 7.5 - Available-for-Sale Securities in a Gross Unrealized Loss Position


	December 31, 2025
	Less than 12 Months		12 Months or Greater
(In millions)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
Agency mortgage-related securities	$178	$—	$1,713	($40)
Other mortgage-related securities	43	—	22	(18)
Total available-for-sale securities in a gross unrealized loss position	$221	$—	$1,735	($58)


	December 31, 2024
	Less than 12 Months		12 Months or Greater
(In millions)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
Agency mortgage-related securities	$448	($6)	$2,198	($95)
Other mortgage-related securities	33	—	31	(13)
Total available-for-sale securities in a gross unrealized loss position	$481	($6)	$2,229	($108)

Gains and losses on the sale of securities are included in investment gains, net, including those gains (losses) reclassified into earnings from AOCI. We use the specific identification method for determining the cost basis of a security in computing the gain or loss.

The table below summarizes the total proceeds, gross realized gains, and gross realized losses from sales of available-for-sale securities.

Table 7.6 - Total Proceeds, Gross Realized Gains and Gross Realized Losses from Sales of Available-for-Sale Securities


	Year Ended December 31,
(In millions)	2025	2024	2023
Gross realized gains	$1	$9	$9
Gross realized losses	(1)	(13)	(183)
Net realized gains (losses)	$—	($4)	($174)
Total proceeds	$989	$1,175	$3,164

During the years ended December 31, 2025, December 31, 2024, and December 31, 2023, we recognized $0.0 billion, $0.6 billion, and $1.7 billion, respectively, of investments in securities in exchange for the issuance of debt issued by consolidated trusts through partial sales of commingled single-class resecuritization products that were previously consolidated.

During the years ended December 31, 2025, December 31, 2024, and December 31, 2023, we derecognized $1.5 billion, $3.4 billion, and $4.8 billion respectively, of mortgage-related securities and debt issued by consolidated trusts where we were no longer deemed the primary beneficiary.