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Debt
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Debt Debt
Short-Term Borrowings
The following table presents the composition of our short-term borrowings portfolio.
June 30, 2021December 31, 2020
($ in millions)
Unsecured
Secured (a)
Total
Unsecured
Secured (a)
Total
Demand notes (b)$— $— $— $2,136 $— $2,136 
Total short-term borrowings$— $— $— $2,136 $— $2,136 
(a)Refer to the section below titled Long-Term Debt for further details on assets restricted as collateral for payment of the related debt.
(b)On March 1, 2021, we terminated the offering of our demand notes program, and redeemed in full all outstanding demand notes.
Long-Term Debt
The following table presents the composition of our long-term debt portfolio.
June 30, 2021December 31, 2020
($ in millions)
Unsecured
Secured
Total
Unsecured
Secured
Total
Long-term debt (a)
Due within one year
$966 $6,181 $7,147 $647 $4,438 $5,085 
Due after one year
8,924 825 9,749 11,367 5,554 16,921 
Total long-term debt (b) (c)$9,890 $7,006 $16,896 $12,014 $9,992 $22,006 
(a)Includes basis adjustments related to the application of hedge accounting. Refer to Note 18 for additional information.
(b)Includes $1.2 billion and $2.6 billion of trust preferred securities at June 30, 2021, and December 31, 2020, respectively.
(c)Includes advances, net of hedge basis adjustments, from the FHLB of Pittsburgh of $5.0 billion and $5.8 billion at June 30, 2021, and December 31, 2020, respectively.
The following table presents the scheduled remaining maturity of long-term debt at June 30, 2021, assuming no early redemptions will occur. The amounts below include adjustments to the carrying value resulting from the application of hedge accounting. The actual payment of secured debt may vary based on the payment activity of the related pledged assets.
($ in millions)202120222023202420252026 and thereafter
Total
Unsecured
Long-term debt
$1,074 $1,103 $2,108 $1,473 $2,360 $2,755 $10,873 
Original issue discount
(66)(51)(57)(64)(69)(676)(983)
Total unsecured
1,008 1,052 2,051 1,409 2,291 2,079 9,890 
Secured
Long-term debt
1,459 4,867 617 41 12 10 7,006 
Total long-term debt
$2,467 $5,919 $2,668 $1,450 $2,303 $2,089 $16,896 
The following summarizes assets restricted as collateral for the payment of the related debt obligation, primarily arising from securitization transactions accounted for as secured borrowings.
June 30, 2021December 31, 2020
($ in millions)
Total (a)
Ally Bank
Total (a)
Ally Bank
Consumer mortgage finance receivables$13,968 $13,968 $14,979 $14,979 
Consumer automotive finance receivables
9,660 9,244 9,953 9,510 
Commercial finance receivables2,147 2,147 10,866 10,866 
Total assets restricted as collateral (b) (c)$25,775 $25,359 $35,798 $35,355 
Secured debt
$7,006 $6,700 $9,992 $9,634 
(a)Ally Bank is a component of the total column.
(b)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 $14.0 billion and $20.0 billion at June 30, 2021, and December 31, 2020, respectively. These assets were composed primarily of consumer mortgage finance receivables and loans and investment securities. Ally Bank has access to the FRB Discount Window and had assets pledged and restricted as collateral to the FRB totaling $2.4 billion at both June 30, 2021, and December 31, 2020. These assets were composed of consumer automotive finance receivables and loans. 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 other subsidiaries.
(c)Excludes restricted cash and cash reserves for securitization trusts recorded within other assets on the Condensed Consolidated Balance Sheet. Refer to Note 10 for additional information.
Trust Preferred Securities
We had approximately $1.2 billion and $2.6 billion in aggregate liquidation preference of Series 2 TRUPS outstanding at June 30, 2021, and December 31, 2020, respectively. 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 are payable at an annual rate equal to three-month LIBOR plus 5.785% payable quarterly in arrears. 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 may redeem, in part or in whole, 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. The Series 2 TRUPS were issued prior to October 4, 2010, under the Emergency Economic Stabilization Act of 2008 and are not subject to phase-out from additional Tier 1 capital into Tier 2 capital.
On April 22, 2021, we issued $1.35 billion of preferred stock, Series B, and used the proceeds to redeem $1.4 billion, or 56,000,000 shares of the Series 2 TRUPS outstanding. The redemption was effectuated on May 24, 2021. Additionally, on June 2, 2021, we issued $1.0 billion of preferred stock, Series C, and announced our intent to use the proceeds to redeem a portion of the Series 2 TRUPS outstanding. On July 2, 2021, we effectuated the redemption of an additional $1.04 billion, or 41,600,000 shares of the Series 2 TRUPS outstanding.
The amount of Series 2 TRUPS included in Ally’s Tier 1 capital was $181 million at June 30, 2021. The amount represents the carrying amount of the Series 2 TRUPS, net of the carrying amount of Series 2 TRUPS for which we issued a notice of redemption on June 2, 2021, less our common stock investment in the trust.
Funding Facilities
We utilize both committed secured credit facilities and other collateralized funding vehicles. The debt outstanding under our various funding facilities is included on our Condensed Consolidated Balance Sheet.
The total capacity in our credit facilities is provided by banks through private transactions. The facilities can be revolving in nature, generally having an original tenor ranging from 364 days to two years, and allow for additional funding during the commitment period, or they can be amortizing and not allow for any further funding after the commitment period. At June 30, 2021, all of our $300 million of capacity was revolving and of this balance, $125 million was from facilities with a remaining tenor greater than 364 days.
Committed Secured Credit Facilities
OutstandingUnused capacity (a)Total capacity
($ in millions)June 30, 2021December 31, 2020June 30, 2021December 31, 2020June 30, 2021December 31, 2020
Parent funding
Secured$132 $— $168 $560 $300 $560 
Total committed secured credit facilities$132 $— $168 $560 $300 $560 
(a)Funding from committed secured credit facilities is available on request in the event excess collateral resides in certain facilities or the extent incremental collateral is available and contributed to the facilities.