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Long-term Debt
 12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Long-term Debt Long-term debt
JPMorgan Chase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2018.
By remaining maturity at
December 31,
(in millions, except rates)
 
2018
 
 
2017
 
Under 1 year

 
1-5 years

 
After 5 years

 
Total
 
 
Total
Parent company
 
 
 
 
 
 
 
 
 
 
 
Senior debt:
Fixed rate
$
8,958

 
$
55,362

 
$
81,500

 
$
145,820

 
 
$
141,551

 
Variable rate
4,037

 
14,025

 
4,916

 
22,978

 
 
26,461

 
Interest rates(a)
0.17-6.30%

 
0.23-4.95%

 
0.45-6.40%

 
0.17-6.40%

 
 
0.16-7.25%

Subordinated debt:
Fixed rate
$
146

 
$
1,948

 
$
12,214

 
$
14,308

 
 
$
14,646

 
Variable rate
—

 
—

 
9

 
9

 
 
9

 
Interest rates(a)
8.53
%
 
3.38
%
 
3.63-8.00%

 
3.38-8.53%

 
 
3.38-8.53%

 
Subtotal
$
13,141

 
$
71,335

 
$
98,639

 
$
183,115

 
 
$
182,667

Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Banks advances:
Fixed rate
$
12

 
$
25

 
$
118

 
$
155

 
 
$
167

 
Variable rate
11,000

 
29,300

 
4,000

 
44,300

 
 
60,450

 
Interest rates(a)
2.58-2.95%

 
2.36-2.96%

 
2.43-2.52%

 
2.36-2.96%

 
 
1.18-2.00%

Senior debt:
Fixed rate
$
1,574

 
$
6,454

 
$
8,406

 
$
16,434

 
 
$
11,990

 
Variable rate
6,667

 
22,277

 
6,657

 
35,601

 
 
26,218

 
Interest rates(a)
1.65-7.50%

 
2.60-7.50%

 
1.00-7.50%

 
1.00-7.50%

 
 
0.22-7.50%

Subordinated debt:
Fixed rate
$
—

 
$
—

 
$
301

 
$
301

 
 
$
313

 
Variable rate
—

 
—

 
—

 
—

 
 
—

 
Interest rates(a)
—
%
 
—
%
 
8.25
%
 
8.25
%
 
 
8.25
%
 
Subtotal
$
19,253

 
$
58,056

 
$
19,482

 
$
96,791

 
 
$
99,138

Junior subordinated debt:
Fixed rate
$
—

 
$
—

 
$
659

 
$
659

 
 
$
690

 
Variable rate
—

 
—

 
1,466

 
1,466

 
 
1,585

 
Interest rates(a)
—
%
 
—
%
 
3.04-8.75%

 
3.04-8.75%

 
 
1.88-8.75%

 
Subtotal
$
—

 
$
—

 
$
2,125

 
$
2,125

 
 
$
2,275

Total long-term debt(b)(c)(d)
 
$
32,394

 
$
129,391

 
$
120,246

 
$
282,031

(f)(g) 
 
$
284,080

Long-term beneficial interests:
 
 
 
 
 
 
 
 
 
 
 
Fixed rate
$
4,634

 
$
2,977

 
$
—

 
$
7,611

 
 
$
13,579

 
Variable rate
2,324

 
3,471

 
308

 
6,103

 
 
8,192

 
Interest rates
1.27-2.87%

 
0.00-3.01%

 
2.50-4.62%

 
0.00-4.62%

 
 
0.00-6.54%

Total long-term beneficial interests(e)
 
$
6,958

 
$
6,448

 
$
308

 
$
13,714

 
 
$
21,771

(a)
The interest rates shown are the range of contractual rates in effect at December 31, 2018 and 2017, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting derivatives, the range of modified rates in effect at December 31, 2018, for total long-term debt was (0.06)% to 8.88%, versus the contractual range of 0.17% to 8.75% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value.
(b)
Included long-term debt of $47.7 billion and $63.5 billion secured by assets totaling $207.0 billion and $208.4 billion at December 31, 2018 and 2017, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.
(c)
Included $54.9 billion and $47.5 billion of long-term debt accounted for at fair value at December 31, 2018 and 2017, respectively.
(d)
Included $11.2 billion and $10.3 billion of outstanding zero-coupon notes at December 31, 2018 and 2017, respectively. The aggregate principal amount of these notes at their respective maturities is $37.4 billion and $33.5 billion, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable.
(e)
Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $28 million and $45 million accounted for at fair value at December 31, 2018 and 2017, respectively. Excluded short-term commercial paper and other short-term beneficial interests of $6.5 billion and $4.3 billion at December 31, 2018 and 2017, respectively.
(f)
At December 31, 2018, long-term debt in the aggregate of $138.2 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments.
(g)
The aggregate carrying values of debt that matures in each of the five years subsequent to 2018 is $32.4 billion in 2019, $46.7 billion in 2020, $40.0 billion in 2021, $16.3 billion in 2022 and $26.4 billion in 2023.
The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.28% and 2.87% as of December 31, 2018 and 2017, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorgan Chase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm’s interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 3.64% and 2.56% as of December 31, 2018 and 2017, respectively.
JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including both long-term debt and structured notes. These guarantees rank on parity with the Firm’s other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $10.9 billion and $7.9 billion at December 31, 2018 and 2017, respectively.
The Firm’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios, earnings or stock price.Junior subordinated deferrable interest debenturesOn September 10, 2018 the Firm’s last remaining issuer of outstanding trust preferred securities (“issuer trust”) was liquidated, resulting in $475 million of trust preferred securities and $15 million of trust common securities originally issued by the issuer trust being cancelled. The junior subordinated debentures previously held by the trust issuer were distributed pro rata to the holders of the trust preferred and trust common securities. The carrying value of the junior subordinated debt was $659 million as of December 31, 2018.