Long-term Debt

12 Months Ended

Dec. 31, 2020

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, 2020.


By remaining maturity at December 31, (in millions, except rates)		2020													2019
		Under 1 year			1-5 years			After 5 years			Total				Total
Parent company
Senior debt:	Fixed rate	$	9,225		$	49,987		$	114,296		$	173,508			$	161,198
	Variable rate	1,580			8,644			8,353			18,577				18,615
	Interest rates(a)	1.33-4.63%			0.50-4.50%			0.17-6.40%			0.17-6.40%				0.15-6.40%
Subordinated debt:	Fixed rate	$	—		$	5,678		$	13,577		$	19,255			$	15,155
	Variable rate	—			—			9			9				9
	Interest rates(a)	—%			3.38-7.75%			2.96-8.00%			2.96-8.00%				3.38-8.00%
	Subtotal	$	10,805		$	64,309		$	136,235		$	211,349			$	194,977
Subsidiaries
Federal Home Loan Banks advances:	Fixed rate	$	7		$	45		$	71		$	123			$	135
	Variable rate	3,000			11,000			—			14,000				28,500
	Interest rates(a)	0.57-0.60%			0.19-0.24%			4.66-7.73%			0.19-7.73%				1.67-8.31%			(h)
Senior debt:	Fixed rate	$	1,067		$	3,157		$	11,534		$	15,758			$	19,597
	Variable rate	12,055			18,448			7,608			38,111				45,861
	Interest rates(a)	—%			7.28%			1.00-1.30%			1.00-7.28%				1.00-9.43%
Subordinated debt:	Fixed rate	$	—		$	309		$	—		$	309			$	305
	Variable rate	—			—			—			—				—
	Interest rates(a)	—		%	8.25		%	—		%	8.25		%		8.25		%
	Subtotal	$	16,129		$	32,959		$	19,213		$	68,301			$	94,398
Junior subordinated debt:	Fixed rate	$	—		$	—		$	738		$	738			$	693
	Variable rate	—			—			1,297			1,297				1,430
	Interest rates(a)	—%			—%			0.71-8.75%			0.71-8.75%				2.41-8.75%
	Subtotal	$	—		$	—		$	2,035		$	2,035			$	2,123
Total long-term debt(b)(c)(d)		$	26,934		$	97,268		$	157,483		$	281,685		(f)(g)	$	291,498
Long-term beneficial interests:
	Fixed rate	$	625		$	1,744		$	—		$	2,369			$	2,990
	Variable rate	1,924			650			210			2,784				3,748
	Interest rates	0.36-2.77%			0.00-2.39%			0.00-3.75%			0.00-3.75%				0.00-4.06%
Total long-term beneficial interests(e)		$	2,549		$	2,394		$	210		$	5,153			$	6,738

(a)The interest rates shown are the range of contractual rates in effect at December 31, 2020 and 2019, 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, 2020, for total long-term debt was (0.40)% to 7.28%, 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 $17.2 billion and $32.0 billion secured by assets totaling $166.4 billion and $186.1 billion at December 31, 2020 and 2019, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.

(c)Included $76.8 billion and $75.7 billion of long-term debt accounted for at fair value at December 31, 2020 and 2019, respectively.

(d)Included $16.1 billion and $14.0 billion of outstanding zero-coupon notes at December 31, 2020 and 2019, respectively. The aggregate principal amount of these notes at their respective maturities is $45.3 billion and $39.7 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 $41 million and $36 million accounted for at fair value at December 31, 2020 and 2019, respectively. Excluded short-term commercial paper and other short-term beneficial interests of $12.4 billion and $11.1 billion at December 31, 2020 and 2019, respectively.

(f)At December 31, 2020, long-term debt in the aggregate of $151.3 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 2020 is $26.9 billion in 2021, $18.4 billion in 2022, $32.2 billion in 2023, $29.6 billion in 2024 and $17.1 billion in 2025.

(h)Prior-period amounts have been revised to conform with the current presentation.

The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 2.89% and 3.13% as of December 31, 2020 and 2019, 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 1.58% and 3.19% as of December 31, 2020 and 2019, respectively.

JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including 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 $13.8 billion and $14.4 billion at December 31, 2020 and 2019, 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.