Investments in Securities (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments In Trading Securities

The following table displays our investments in trading securities.

	As of December 31,
	2022		2021
	(Dollars in millions)
Mortgage-related securities (includes $427 million and $593 million, respectively, related to consolidated trusts)	$	3,211	$	4,606
Non-mortgage-related securities (includes $3.9 billion and $4.2 billion, respectively, pledged as collateral)(1)	46,918		83,600
Total trading securities	$	50,129	$	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 Year Ended December 31,
	2022			2021			2020
	(Dollars in millions)
Net trading gains (losses)		$	(3,504)		$	(1,060)		$	513
Net trading gains (losses) recognized in the period related to securities still held at period end		(2,865)			(997)			252

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 December 31, 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)		$	445		$	—		$	3		$	(22)		$	426
Other mortgage-related securities		269			(3)			5			(1)			270
Total		$	714		$	(3)		$	8		$	(23)		$	696

	As of December 31, 2021
	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)		$	504		$	—		$	14		$	(11)		$	507
Other mortgage-related securities		323			*			10			(3)			330
Total		$	827		*			$	24		$	(14)		$	837

s

* Total allowance for credit losses is less than $0.5 million as of December 31, 2021.

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

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

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 December 31,
	2022										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		$	(12)	$	161		$	(10)	$	159		$	(5)	$	225		$	(6)	$	102
Other mortgage-related securities		(1)		8			—		—			(3)		3			—		—
Total		$	(13)	$	169		$	(10)	$	159		$	(8)	$	228		$	(6)	$	102

Schedule of Available-for-sale Securities Realized Gain (Loss)

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

	For the Year Ended December 31,
	2022		2021		2020
	(Dollars in millions)
Gross realized gains	$	—	$	59	$	57
Total proceeds (excludes initial sale of securities from new portfolio securitizations)	—		582		361

Schedule of Accumulated Other Comprehensive Income (Loss)

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

	As of December 31,
	2022		2021		2020
	(Dollars in millions)
Net unrealized gains (losses) on AFS securities for which we have not recorded an allowance for credit losses	$	(13)	$	9	$	74
Net unrealized gains (losses) on AFS securities for which we have recorded an allowance for credit losses	—		(2)		—
Other	48		31		42
Accumulated other comprehensive income	$	35	$	38	$	116

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 December 31, 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		$	445			$	426		$	—			$	—		$	3			$	3		$	12			$	12		$	430			$	411
Other mortgage-related securities		266				270			1				1			17				17			16				17			232				235
Total		$	711			$	696		$	1			$	1		$	20			$	20		$	28			$	29		$	662			$	646
Weighted-average interest rate(2)		7.27		%					7.68		%					6.80		%					6.64		%					7.31		%

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

(2)Weighted-average interest rate includes the effects of discounts, premiums and other cost basis adjustments.