Collateralized Agreements

12 Months Ended

Dec. 31, 2025

Offsetting [Abstract]

COLLATERALIZED AGREEMENTS AND OFFSETTING ARRANGEMENTS

NOTE 10

Collateralized Agreements

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

As an investor, we enter into arrangements to purchase securities under agreements to subsequently resell the identical or substantially the same securities to our counterparty. Our counterparties to these transactions are required to pledge the purchased securities as collateral for their obligation to repurchase those securities at a later date. While such transactions involve the legal transfer of securities, they are accounted for as secured financings because the transferor does not relinquish effective control over the securities transferred. These agreements may allow us to repledge all, or a portion, of the collateral pledged to us, and we may repledge such collateral periodically, although it is not typically our practice to repledge collateral that has been pledged to us.

We consider the types of securities being pledged to us as collateral when determining how much we lend in transactions involving securities purchased under agreements to resell. Additionally, we regularly review the market values of these securities compared to amounts loaned in an effort to manage our exposure to losses and we reasonably expect the borrower to continue to replenish the collateral to meet the requirements of the contract. As of December 31, 2025, all of our securities purchased under agreements to resell were fully collateralized.

We utilize the GSD/FICC as a clearinghouse to transact many of our trades involving securities purchased under agreements to resell, securities sold under agreements to repurchase, and other non-mortgage related securities. As a clearing member of GSD/FICC, we are required to post initial and variation margin payments and are exposed to the counterparty credit risk of GSD/FICC (including its clearing members). In the event a clearing member fails and causes losses to the GSD/FICC clearing system, we could be subject to the loss of the margin that we have posted to the GSD/FICC. Moreover, our exposure could exceed that amount, as members are generally required to cover losses caused by defaulting members on a pro rata basis. It is difficult to estimate our maximum exposure under these transactions, as this would require an assessment of transactions that we and other members of the GSD/FICC may execute in the future.

We provide financing to investors in Freddie Mac securities to increase liquidity and expand the investor base for those securities. These transactions differ from the securities purchased under agreements to resell that we use for liquidity purposes as the counterparties we face may not be major financial institutions and we are exposed to greater counterparty credit risk for these institutions. As of December 31, 2025 and December 31, 2024, $2.1 billion and $2.8 billion, respectively, of our securities purchased under agreements to resell were used to provide financing to investors in Freddie Mac securities.

Securities sold under agreements to repurchase are effectively collateralized borrowings where we sell securities with an agreement to repurchase such securities at a future date. We are required to pledge the sold securities to the counterparties to these transactions as collateral for our obligation to repurchase these securities at a later date. Similar to the securities purchased under agreements to resell transactions, these transactions involve the legal transfer of securities. However, they are accounted for as secured financings because the transferor does not relinquish effective control over the securities transferred. These agreements may allow our counterparties to repledge all or a portion of the collateral.

We offset payables related to securities sold under agreements to repurchase against receivables related to securities purchased under agreements to resell when such amounts meet the conditions for balance sheet offsetting. The table below presents offsetting and collateral information related to securities purchased under agreements to resell, and securities sold under agreements to repurchase which are subject to enforceable master netting agreements or similar arrangements.

Table 10.1 - Offsetting and Collateral Information of Certain Financial Assets and Liabilities

	December 31, 2025		December 31, 2024
	Assets	Liabilities	Assets	Liabilities
(In millions)	Securities Purchased Under Agreements to Resell	Securities Sold Under Agreements to Repurchase	Securities Purchased Under Agreements to Resell	Securities Sold Under Agreements to Repurchase
Gross amount recognized	$78,378	($6,459)	$108,338	($8,220)
Amount offset in the consolidated balance sheets	(6,459)	6,459	(8,220)	8,220
Net amount presented in the consolidated balance sheets	71,919	—	100,118	—
Gross amount not offset in the consolidated balance sheets(1)	(71,919)	—	(100,118)	—
Net amount	$—	$—	$—	$—

(1)For securities purchased under agreements to resell, includes $78.3 billion and $104.9 billion of collateral that we had the right to repledge as of December 31, 2025 and December 31, 2024, respectively. We did not repledge collateral at December 31, 2025 or December 31, 2024.

The table below presents the remaining contractual maturity of our gross obligations for our securities sold under agreements to repurchase. The collateral for such obligations consisted primarily of U.S. Treasury securities.

Table 10.2 - Remaining Contractual Maturity

	December 31,
(In millions)	2025	2024
Overnight and continuous	$—	$—
30 days or less	6,459	8,220
After 30 days through 90 days	—	—
Greater than 90 days	—	—
Total	$6,459	$8,220

Collateral Pledged

Table 10.3 - Collateral in the Form of Securities Pledged

	December 31,
(In millions)	2025	2024
Trading securities	$11,159	$9,559