Debt

Short-term Borrowings

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



	March 31, 2017							December 31, 2016
($ in millions)	Unsecured			Secured (a)		Total		Unsecured		Secured (a)		Total
Demand notes	$	3,652		$	—	$	3,652	$	3,622	$	—	$	3,622
Federal Home Loan Bank	—			1,850		1,850		—		7,875		7,875
Financial instruments sold under agreements to repurchase	—			1,620		1,620		—		1,176		1,176
Other	1,249		(b)	—		1,249		—		—		—
Total short-term borrowings	$	4,901		$	3,470	$	8,371	$	3,622	$	9,051	$	12,673


(a)	Refer to the section below titled Long-term Debt for further details on assets restricted as collateral for payment of the related debt.


(b)	Balance represents private unsecured committed credit facility and includes debt issuance costs of $1 million as of March 31, 2017. This debt is scheduled to mature in December 2017.

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 March 31, 2017, the financial instruments sold under agreement to repurchase consisted of $520 million of mortgage-backed residential securities maturing within the next 30 days, $0 million within 31 to 60 days, and $626 million within 61 to 90 days. For further details refer to Note 7 and Note 22. Additionally, in December 2016, we sold asset-backed automotive financial instruments, which are our retained interests from certain on-balance sheet securitizations, subject to a repurchase agreement set to mature by July 2017 in exchange for $500 million, which was recorded as a short-term secured borrowing. As of March 31, 2017, the balance was $474 million. The asset-backed automotive financial instruments that we sold subject to the repurchase agreement are secured by finance receivables that we have securitized. Refer to Note 10 for additional information on our securitization activities.

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 March 31, 2017, we received cash collateral totaling $1 million and we placed cash collateral totaling $5 million with counterparties under these collateral arrangements associated with our repurchase agreements.

Long-term Debt

The following table presents the composition of our long-term debt portfolio.



	March 31, 2017							December 31, 2016
($ in millions)	Unsecured		Secured			Total		Unsecured		Secured			Total
Long-term debt
Due within one year	$	2,329	$	9,048		$	11,377	$	4,274	$	10,279		$	14,553
Due after one year (a)	14,893		24,492			39,385		15,450		23,810			39,260
Fair value adjustment (b)	308		(9		)	299		326		(11		)	315
Total long-term debt (c)	$	17,530	$	33,531		$	51,061	$	20,050	$	34,078		$	54,128


(a)	Includes $2.6 billion of trust preferred securities at both March 31, 2017, and December 31, 2016.


(b)	Represents the fair value adjustment associated with the application of hedge accounting on certain of our long-term debt positions. Refer to Note 19 for additional information.


(c)	Includes advances from the FHLB of Pittsburgh of $6.1 billion at both March 31, 2017, and December 31, 2016.

The following table presents the scheduled remaining maturity of long-term debt at March 31, 2017, assuming no early redemptions will occur. The actual payment of secured debt may vary based on the payment activity of the related pledged assets.



($ in millions)	2017			2018			2019			2020			2021			2022 and thereafter			Fair value adjustment			Total
Unsecured
Long-term debt	$	1,811		$	3,700		$	1,681		$	2,236		$	638		$	8,460		$	308		$	18,834
Original issue discount	(69		)	(101		)	(39		)	(39		)	(42		)	(1,014		)	—			(1,304		)
Total unsecured	1,742			3,599			1,642			2,197			596			7,446			308			17,530
Secured
Long-term debt	7,575			8,534			8,080			5,175			2,558			1,618			(9		)	33,531
Total long-term debt	$	9,317		$	12,133		$	9,722		$	7,372		$	3,154		$	9,064		$	299		$	51,061

The following summarizes assets restricted as collateral for the payment of the related debt obligation primarily arising from securitization transactions accounted for as secured borrowings and repurchase agreements.



	March 31, 2017					December 31, 2016
($ in millions)	Total (a)			Ally Bank		Total (a)			Ally Bank
Investment securities (b)	$	3,175		$	1,978	$	4,895		$	4,231
Mortgage assets held-for-investment and lending receivables	10,847			10,847		10,954			10,954
Consumer automotive finance receivables (b)	26,420			4,523		27,846			5,751
Commercial automotive finance receivables	17,901			17,709		19,487			19,280
Investment in operating leases, net	1,412			314		2,040			913
Total assets restricted as collateral (c) (d)	$	59,755		$	35,371	$	65,222		$	41,129
Secured debt	$	37,001	(e)	$	15,120	$	43,129	(e)	$	22,149


(a)	Ally Bank is a component of the total column.


(b)	A portion of the restricted investment securities and consumer automotive finance receivables are restricted under repurchase agreements. Refer to the section above titled Short-term Borrowings for information on the repurchase agreements.

(c)

Ally Bank has an advance agreement with the FHLB, and had assets pledged to secure borrowings that were restricted as collateral to the FHLB totaling $16.8 billion and $19.0 billion at March 31, 2017, and December 31, 2016, respectively. These assets were composed primarily of consumer mortgage finance receivables and loans and investment securities. Ally Bank has access to the Federal Reserve Bank Discount Window. Ally Bank had assets pledged and restricted as collateral to the Federal Reserve Bank totaling $2.3 billion and $2.4 billion at March 31, 2017, and December 31, 2016, respectively. These assets were composed of consumer automotive finance receivables and loans and operating lease assets. Availability under these programs is only for the operations of Ally Bank and cannot be used to fund the operations or liabilities of Ally or its subsidiaries.


(d)	Excludes restricted cash and cash reserves for securitization trusts recorded within other assets on the Condensed Consolidated Balance Sheet. Refer to Note 12 for additional information.


(e)	Includes $3.5 billion and $9.1 billion of short-term borrowings at March 31, 2017, and December 31, 2016, respectively.

Trust Preferred Securities

At March 31, 2017, we have issued and outstanding approximately $2.6 billion in aggregate liquidation preference of 8.125% Fixed Rate / Floating Rate Trust Preferred Securities, Series 2 (Series 2 TRUPS). Each Series 2 TRUPS security has a liquidation amount of $25. Distributions are cumulative and are payable until redemption at the applicable coupon rate. Distributions were payable at an annual rate of 8.125% payable quarterly in arrears, through but excluding February 15, 2016. From and including February 15, 2016, to but excluding February 15, 2040, distributions will be payable at an annual rate equal to three-month London interbank offer rate plus 5.785% payable quarterly in arrears, beginning May 15, 2016. Ally has the right to defer payments of interest for a period not exceeding 20 consecutive quarters. The Series 2 TRUPS have no stated maturity date, but must be redeemed upon the redemption or maturity of the related debentures (Debentures), which mature on February 15, 2040. Ally at any time on or after February 15, 2016, may redeem the Series 2 TRUPS at a redemption price equal to 100% of the principal amount being redeemed, plus accrued and unpaid interest through the date of redemption. The Series 2 TRUPS are generally nonvoting, other than with respect to certain limited matters. During any period in which any Series 2 TRUPS remain outstanding but in which distributions on the Series 2 TRUPS have not been fully paid, none of Ally or its subsidiaries will be permitted to (i) declare or pay dividends on, make any distributions with respect to, or redeem, purchase, acquire or otherwise make a liquidation payment with respect to, any of Ally’s capital stock or make any guarantee payment with respect thereto; or (ii) make any payments of principal, interest, or premium on, or repay, repurchase or redeem, any debt securities or guarantees that rank on a parity with or junior in interest to the Debentures with certain specified exceptions in each case.

Funding Facilities

We utilize both committed credit facilities and other collateralized funding vehicles. The debt outstanding under our various funding facilities is included on our Condensed Consolidated Balance Sheet.

As of March 31, 2017, Ally Bank had exclusive access to $2.4 billion of funding capacity from committed credit facilities. Funding programs supported by the Federal Reserve and the FHLB, together with repurchase agreements, complement Ally Bank’s private collateralized funding vehicles.

The total capacity in our committed funding facilities is provided by banks through private transactions. The committed secured funding facilities can be revolving in nature and allow for additional funding during the commitment period, or they can be amortizing and not allow for any further funding after the closing date. At March 31, 2017, $15.6 billion of our $16.4 billion of committed capacity was revolving. Our revolving facilities generally have an original tenor ranging from 364 days to two years. As of March 31, 2017, we had $3.1 billion of committed funding capacity from revolving facilities with a remaining tenor greater than 364 days.

Committed Funding Facilities



	Outstanding				Unused capacity (a)				Total capacity
($ in millions)	March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Bank funding
Secured (b)	$	2,050	$	3,250	$	350	$	350	$	2,400	$	3,600
Parent funding
Secured	12,123		11,550		652		1,975		12,775		13,525
Unsecured	1,250		—		—		1,250		1,250		1,250
Total committed facilities	$	15,423	$	14,800	$	1,002	$	3,575	$	16,425	$	18,375


(a)	Funding from committed secured facilities is available on request in the event excess collateral resides in certain facilities or is available to the extent incremental collateral is available and contributed to the facilities.


(b)	Excludes off-balance sheet credit facility amounts.