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Investments in Securities
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments in Securities Investments in Securities
Trading Securities
Trading securities are recorded at fair value with subsequent changes in fair value recorded as “Fair value gains (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, 2024December 31, 2023
(Dollars in millions)
Mortgage-related securities (includes $327 million and $364 million, respectively, related to consolidated trusts)
$1,327 $4,770 
Non-mortgage-related securities (includes $8.7 billion and $5.7 billion, respectively, pledged as collateral)(1)
48,065 47,782 
Total trading securities$49,392 $52,552 
(1)Primarily includes U.S. Treasury securities.
The following table displays information about our net trading gains (losses).
For the Three Months Ended June 30,For the Six Months Ended June 30,
2024202320242023
(Dollars in millions)
Net trading gains (losses)
$121 $(723)$(140)$23 
Net trading gains (losses) recognized in the period related to securities still held at period end
105 (731)(157)60 
Available-for-Sale Securities
We record AFS securities at fair value with unrealized gains and losses, recorded net of tax, as a component of “Other comprehensive income (loss)” and we recognize realized gains and losses from the sale of AFS securities in “Investment gains (losses), net” in our condensed consolidated statements of operations and comprehensive income. We define the amortized cost basis of our AFS securities as unpaid principal balance, net of unamortized premiums and discounts, and other cost basis adjustments. We record an allowance for credit losses for AFS securities that reflects the impairment for credit losses, which are limited to the amount that fair value is less than the amortized cost. Impairment due to non-credit losses are recorded as unrealized losses within “Other comprehensive income (loss).”
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, 2024
Total Amortized CostAllowance for Credit LossesGross Unrealized Gains in AOCIGross Unrealized Losses in AOCITotal Fair Value
(Dollars in millions)
Agency securities$384 $— $1 $(29)$356 
Other mortgage-related securities143 (2)10 — 151 
Total$527 $(2)$11 $(29)$507 
As of December 31, 2023
Total Amortized CostAllowance for Credit LossesGross Unrealized Gains in AOCIGross Unrealized Losses in AOCITotal Fair Value
(Dollars in millions)
Agency securities$405 $— $1 $(29)$377 
Other mortgage-related securities179 (2)10 — 187 
Total$584 $(2)$11 $(29)$564 
Agency securities consist of securities issued by us, Freddie Mac, or Ginnie Mae. The principal and interest on these securities are guaranteed by the issuing agency. We believe that the guaranty provided by the issuing agency, the support provided to the agencies by the U.S. government, the importance of the agencies to the liquidity and stability in the secondary mortgage market, and the long history of zero credit losses on agency mortgage-related securities are all indicators that there are currently no credit losses on these securities, even if the security is in an unrealized loss position. In addition, we generally hold these securities that are in an unrealized loss position to recovery. As a result, unless we intend to sell the security, we do not recognize an allowance for credit losses on agency mortgage-related securities.
The following table displays additional information regarding gross unrealized losses and fair value by major security type for AFS securities in an unrealized loss position, excluding allowance for credit losses.
As of
June 30, 2024December 31, 2023
Less Than 12 Consecutive Months12 Consecutive Months or LongerLess Than 12 Consecutive Months12 Consecutive Months or Longer
Gross Unrealized Losses in AOCIFair ValueGross Unrealized Losses in AOCIFair ValueGross Unrealized Losses in AOCIFair ValueGross Unrealized Losses in AOCIFair Value
(Dollars in millions)
Agency securities$(1)$41 $(28)$238 $(3)$66 $(26)$238 
Other mortgage-related securities— 3 — — — — — — 
Total$(1)$44 $(28)$238 $(3)$66 $(26)$238 
There were no sales of AFS securities in the first half of 2024 or the first half of 2023. As a result, no gross realized gains (losses) or proceeds from sales were recognized in either period.
We held no securities classified as held-to-maturity as of June 30, 2024 or December 31, 2023.