Investments in Securities (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investments In Trading Securities

The following table displays our investments in trading securities.

		As of
		September 30, 2022		December 31, 2021
	(Dollars in millions)
Mortgage-related securities (includes $446 million and $593 million, respectively, related to consolidated trusts)		$	3,551	$	4,606
Non-mortgage-related securities(1)		54,702		83,600
Total trading securities		$	58,253	$	88,206

(1)Primarily includes U.S. Treasury securities.

Schedule of Trading Securities Gains (Losses), Net

The following table displays information about our net trading gains (losses).

		For the Three Months Ended September 30,				For the Nine Months Ended September 30,
		2022		2021		2022		2021
	(Dollars in millions)
Net trading gains (losses)		$	(1,319)	$	(129)	$	(3,754)	$	(726)
Net trading gains (losses) recognized in the period related to securities still held at period end		(1,064)		(124)		(3,157)		(702)

Schedule of Available-for-sale Securities Reconciliation

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 September 30, 2022
	Total Amortized Cost			Allowance for Credit Losses		Gross Unrealized Gains in AOCI		Gross Unrealized Losses in AOCI		Total Fair Value
	(Dollars in millions)
Agency securities(1)		$	459	$	—	$	10	$	(16)	$	453
Other mortgage-related securities(2)		285		(3)		7		(1)		288
Total		$	744	$	(3)	$	17	$	(17)	$	741

	As of December 31, 2021
	Total Amortized Cost			Allowance for Credit Losses(3)		Gross Unrealized Gains in AOCI		Gross Unrealized Losses in AOCI		Total Fair Value
	(Dollars in millions)
Agency securities(1)		$	504	$	—	$	14	$	(11)	$	507
Other mortgage-related securities		323		—		10		(3)		330
Total		$	827	$	—	$	24	$	(14)	$	837

(1)Agency securities consist of securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae.

(2)As of September 30, 2022, substantially all of our non-agency mortgage-related securities were in an unrealized gain position.

(3)Total allowance for credit losses was less than $0.5 million as of December 31, 2021.

Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value

The following table displays 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
	September 30, 2022										December 31, 2021
	Less Than 12 Consecutive Months					12 Consecutive Months or Longer					Less Than 12 Consecutive Months					12 Consecutive Months or Longer
	Gross Unrealized Losses in AOCI			Fair Value		Gross Unrealized Losses in AOCI			Fair Value		Gross Unrealized Losses in AOCI			Fair Value		Gross Unrealized Losses in AOCI			Fair Value
	(Dollars in millions)
Agency securities		$	—	$	—		$	(16)	$	161		$	(5)	$	225		$	(6)	$	102
Other mortgage-related securities		(1)		11			—		—			(3)		3			—		—
Total		$	(1)	$	11		$	(16)	$	161		$	(8)	$	228		$	(6)	$	102

Schedule of Realized Gain (Loss)

The following table displays the gross realized gains (losses) and proceeds on sales of AFS securities.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in millions)
Gross realized gains	$	—	$	—	$	—	$	59
Total proceeds (excludes initial sale of securities from new portfolio securitizations)	—		—		—		582

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table displays net unrealized gains and losses on AFS securities and other amounts recorded within our accumulated other comprehensive income, net of tax.

	As of
	September 30, 2022		December 31, 2021
	(Dollars in millions)
Net unrealized gains (losses) on AFS securities for which we have not recorded an allowance for credit losses	$	(1)	$	9
Net unrealized losses on AFS securities for which we have recorded an allowance for credit losses	—		(2)
Other	25		31
Accumulated other comprehensive income	$	24	$	38

Investments Classified by Contractual Maturity Date

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 September 30, 2022
	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)
Agency securities		$	459	$	453		$	—	$	—		$	4	$	4		$	13	$	13		$	442	$	436
Other mortgage-related securities		282		288			3		3			18		18			14		15			247		252
Total		$	741	$	741		$	3	$	3		$	22	$	22		$	27	$	28		$	689	$	688

(1)Net carrying amount consists of amortized cost, net of allowance for credit losses on AFS debt securities but does not include any unrealized fair value gains or losses.