Short-term Borrowings

9 Months Ended

Sep. 30, 2016

Short-term Borrowings

The following table presents the composition of our short-term borrowings portfolio.



	September 30, 2016						December 31, 2015
($ in millions)	Unsecured		Secured (a)		Total		Unsecured		Secured (a)		Total
Demand notes	$	3,525	$	—	$	3,525	$	3,369	$	—	$	3,369
Federal Home Loan Bank	—		2,250		2,250		—		4,000		4,000
Securities sold under agreements to repurchase	—		659		659		—		648		648
Other	—		—		—		84		—		84
Total short-term borrowings	$	3,525	$	2,909	$	6,434	$	3,453	$	4,648	$	8,101


(a)	Refer to Note 14 for further details on assets restricted as collateral for payment of the related debt.

We periodically enter into term repurchase agreements, short-term borrowing agreements in which we sell financial instruments to one or more investors while simultaneously committing to repurchase them at a specified future date, at the stated price plus accrued interest. As of September 30, 2016, the financial instruments sold under agreement to repurchase consisted of mortgage-backed residential securities with the following maturities: $304 million within the next 30 days and $355 million within 31 to 60 days. Refer to Note 6 and Note 23 for further details on investment securities sold under agreements to repurchase.

The primary risk associated with these repurchase agreements is that the counterparty will be unable to perform under the terms of the contract. As the borrower, we are exposed to the excess market value of the securities pledged over the amount borrowed. Daily mark-to-market collateral management is designed to limit this risk to the initial margin. However, should a counterparty declare bankruptcy or become insolvent, we may incur additional delays and costs. As of September 30, 2016, we placed cash collateral totaling $7 million with counterparties under these collateral arrangements associated with our repurchase agreements.