Trading securities are recorded at fair value with subsequent changes in fair value recorded as “Fair value losses, net” in our condensed consolidated statements of operations and comprehensive income. The following table displays our investments in trading securities.


	As of
	June 30, 2020					December 31, 2019
	(Dollars in millions)
Mortgage-related securities:
Fannie Mae		$	7,053	$	3,424
Other agency⁽¹⁾		3,122		4,490
Private-label and other mortgage securities		459		629
Total mortgage-related securities (includes $829 million and $896 million, respectively, related to consolidated trusts)		10,634		8,543
Non-mortgage-related securities:
U.S. Treasury securities		96,037		39,501
Other securities		73		79
Total non-mortgage-related securities		96,110		39,580
Total trading securities		$	106,744	$	48,123


		For the Three Months Ended June 30,						For the Six Months Ended June 30,

		2020		2019		2020		2019
	(Dollars in millions)
Net trading gains		$	135	$	183	$	782	$	275
Net trading gains recognized in the period related to securities still held at period end		70		147		525		227

The following tables display the amortized cost, allowance for credit losses, gross unrealized gains and losses in accumulated other comprehensive income (loss) (“AOCI”), and fair value by major security type for AFS securities.


	As of June 30, 2020
	Total Amortized Cost⁽¹⁾					Allowance for Credit Losses			Gross Unrealized Gains in AOCI	Gross Unrealized Losses in AOCI				Total Fair Value⁽¹⁾
	(Dollars in millions)
Fannie Mae		$	1,296	$	—		$	112		$	(14)	$	1,394
Other agency⁽²⁾		161		—			19			—		180
Alt-A and subprime private-label securities		4		—			3			—		7

Mortgage revenue bonds		272		(3)			9			—		278
Other mortgage-related securities		257		—			4			—		261
Total		$	1,990	$	(3)		$	147		$	(14)	$	2,120


	As of December 31, 2019
	Total Amortized Cost⁽¹⁾⁽³⁾					Gross Unrealized Gains			Gross Unrealized Losses			Total Fair Value⁽¹⁾
	(Dollars in millions)
Fannie Mae		$	1,445	$	85		$	(10)		$	1,520
Other agency⁽²⁾		183		15			—			198
Alt-A and subprime private-label securities		34		23			—			57
Mortgage revenue bonds		309		9			(3)			315
Other mortgage-related securities		310		5			(1)			314
Total		$	2,281	$	137		$	(14)		$	2,404

⁽¹⁾We exclude from amortized cost and fair value accrued interest of $8 million and $10 million as of June 30, 2020 and December 31, 2019, respectively, which we record in “Other assets” in our condensed consolidated balance sheets.

⁽³⁾Prior to our adoption of the CECL standard, total amortized cost represented the unpaid principal balance, unamortized premiums, discounts and other cost basis adjustments, as well as temporary impairments recognized in “Investment gains, net” in our consolidated statements of operations and comprehensive income.

Our Fannie Mae and other agency AFS securities consist of securities issued by us, Freddie Mac, or Ginnie Mae. The principal and interest on these securities are guaranteed by the issuing agency. We believe that the guaranty provided by the issuing agency, the support provided to the agencies by the U.S. government, the importance of the agencies to the liquidity and stability in the secondary mortgage market, and the long history of zero credit losses on agency mortgage-related securities are all indicators that there are not currently credit losses on these securities, even if the security is in an unrealized loss position. In addition, we generally hold these securities that are in an unrealized loss position to recovery. As a result, unless we intend to sell the security, we do not recognize an allowance for credit losses on agency mortgage-related securities.

As of June 30, 2020, substantially all of our non-agency mortgage-related securities were in an unrealized gain position. As a result, we have not recognized an allowance for credit losses on these securities.

The following tables display additional information regarding gross unrealized losses and fair value by major security type for AFS securities in an unrealized loss position, excluding allowance for credit losses.


	As of June 30, 2020
	Less Than 12 Consecutive Months									12 Consecutive Months or Longer
	Gross Unrealized Losses in AOCI					Fair Value			Gross Unrealized Losses in AOCI			Fair Value
	(Dollars in millions)
Fannie Mae		$	(2)	$	74		$	(12)		$	92
Mortgage revenue bonds		—		—			—			—
Other mortgage-related securities		—		—			—			—
Total		$	(2)	$	74		$	(12)		$	92

	As of December 31, 2019
	Less Than 12 Consecutive Months									12 Consecutive Months or Longer
	Gross Unrealized Losses					Fair Value			Gross Unrealized Losses			Fair Value
	(Dollars in millions)
Fannie Mae		$	—	$	—		$	(10)		$	337
Mortgage revenue bonds		—		—			(3)			3
Other mortgage-related securities		(1)		130			—			—
Total		$	(1)	$	130		$	(13)		$	340


		For the Three Months Ended June 30,						For the Six Months Ended June 30,

		2020		2019		2020		2019
	(Dollars in millions)
Gross realized gains		$	9	$	110	$	30	$	171

Total proceeds (excludes initial sale of securities from new portfolio securitizations)		71		245		121		376


	As of
	June 30, 2020
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded an allowance for credit losses	$	104

Other	29
Accumulated other comprehensive income	$	133


	As of
	December 31, 2019
	(Dollars in millions)
Net unrealized gains on AFS securities for which we have not recorded OTTI	$	97

Other	34
Accumulated other comprehensive income	$	131

The following table displays the amortized cost and fair value of our AFS securities by major security type and remaining contractual maturity, assuming no principal prepayments. The contractual maturity of mortgage-backed securities is not a reliable indicator of their expected life because borrowers generally have the right to prepay their obligations at any time.


	As of June 30, 2020
	Total Carrying Amount ⁽¹⁾					Total Fair Value			One Year or Less							After One Year Through Five Years									After Five Years Through Ten Years				After Ten Years
										Net Carrying Amount ⁽¹⁾				Fair Value		Net Carrying Amount ⁽¹⁾					Fair Value			Net Carrying Amount ⁽¹⁾			Fair Value	Net Carrying Amount ⁽¹⁾		Fair Value
	(Dollars in millions)
Fannie Mae		$	1,296	$	1,394		$	—		$	—	$	12	$	13		$	93	$	105		$	1,191		$	1,276
Other agency		161		180			—			—		14		15			22		24			125			141
Alt-A and subprime private-label securities		4		7			—			—		—		—			3		3			1			4

Mortgage revenue bonds		269		278			2			2		31		33			24		25			212			218
Other mortgage-related securities		257		261			—			—		—		—			21		23			236			238
Total		$	1,987	$	2,120		$	2		$	2	$	57	$	61		$	163	$	180		$	1,765		$	1,877