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Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2023
Derivative Financial Instruments
6.    Derivative Financial Instruments
Blackstone and the consolidated Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment and business purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk exposure against the effects of a portion of its
non-U.S.
dollar denominated currency net investments. As a result of the use of derivative contracts, Blackstone and the consolidated Blackstone Funds are exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, Blackstone and the consolidated Blackstone Funds enter into contracts with certain major financial institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.
 
Freestanding Derivatives
Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts.
The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts.
 
                                                                                                                                                                                 
   
March 31, 2023
  
December 31, 2022
   
Assets
  
Liabilities
  
Assets
  
Liabilities
       
Fair
      
Fair
      
Fair
      
Fair
   
Notional
  
Value
  
Notional
  
Value
  
Notional
  
Value
  
Notional
  
Value
Freestanding Derivatives
                                                                
Blackstone
                                                                
Interest Rate Contracts
  
 $
719,640
 
  
 $
176,132
 
  
 $
688,800
 
  
 $
62,096
 
  
 $
789,540
 
  
 $
188,043
 
  
 $
621,700
 
  
 $
83,331
 
Foreign Currency Contracts
  
 
270,614
 
  
 
3,944
 
  
 
251,568
 
  
 
2,628
 
  
 
541,238
 
  
 
8,040
 
  
 
190,774
 
  
 
3,542
 
Credit Default Swaps
  
 
2,105
 
  
 
522
 
  
 
7,931
 
  
 
1,626
 
  
 
2,007
 
  
 
384
 
  
 
8,768
 
  
 
1,309
 
Total Return Swaps
  
 
34,529
 
  
 
4,206
 
  
 
—
 
  
 
—
 
  
 
42,233
 
  
 
6,210
 
  
 
—
 
  
 
—
 
Equity Options
  
 
—
 
  
 
—
 
  
 
1,111,046
 
  
 
203,419
 
  
 
—
 
  
 
—
 
  
 
996,592
 
  
 
48,581
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
1,026,888
 
  
 
184,804
 
  
 
2,059,345
 
  
 
269,769
 
  
 
1,375,018
 
  
 
202,677
 
  
 
1,817,834
 
  
 
136,763
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Investments of Consolidated Blackstone Funds
                                                                
Interest Rate Contracts
  
 
836,637
 
  
 
57,593
 
  
 
—
 
  
 
—
 
  
 
931,752
 
  
 
74,926
 
  
 
—
 
  
 
—
 
Foreign Currency Contracts
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
5,133
 
  
 
284
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 
836,637
 
  
 
57,593
 
  
 
—
 
  
 
—
 
  
 
931,752
 
  
 
74,926
 
  
 
5,133
 
  
 
284
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   
 $
    1,863,525
 
  
 $
    242,397
 
  
 $
    2,059,345
 
  
 $
    269,769
 
  
 $
    2,306,770
 
  
 $
    277,603
 
  
 $
    1,822,967
 
  
 $
    137,047
 
   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
The table below summarizes the impact to the Condensed Consolidated Statements of Operations from
derivative
financial instruments:
                        
                        
 
  
Three Months Ended

March 31,
 
  
2023
 
2022
Freestanding Derivatives
                 
Realized Gains (Losses)
                 
Interest Rate Contracts
   
$
336
 
  
$
3,899
 
Foreign Currency Contracts
   
 
5,590
 
  
 
3,992
 
Credit Default Swaps
   
 
(51
) 
  
 
95
 
Total Return Swaps
   
 
4,652
 
  
 
—
 
    
 
 
 
  
 
 
 
    
 
10,527
 
  
 
7,986
 
    
 
 
 
  
 
 
 
     
Net Change in Unrealized Gains (Losses)
                 
Interest Rate Contracts
   
 
(2,120
 )
  
 
34,956
 
Foreign Currency Contracts
   
 
(3,183
 )
 
  
 
(9,372
) 
Credit Default Swaps
   
 
(228
 )
 
  
 
13
 
Total Return Swaps
   
 
(13
 )
 
  
 
—
 
Equity Options
   
 
(154,838
 )
 
  
 
—
 
    
 
 
 
  
 
 
 
    
 
(160,382
 )
 
  
 
25,597
 
    
 
 
 
  
 
 
 
    
$
        (149,855
 )
  
$
        33,583
 
    
 
 
 
  
 
 
 
As of March 31, 2023 and December 31, 2022, Blackstone had not designated any derivatives as fair value, cash flow or net investment hedges.