COLLATERALIZED AGREEMENTS AND FINANCINGS

6 Months Ended

Mar. 31, 2023

COLLATERALIZED AGREEMENTS AND FINANCINGS

Collateralized agreements are comprised of securities purchased under agreements to resell (“reverse repurchase agreements”) and securities borrowed. Collateralized financings are comprised of securities sold under agreements to repurchase (“repurchase agreements”) and securities loaned. We enter into these transactions in order to facilitate client activities, acquire securities to cover short positions and finance certain firm activities. The significant accounting policies governing our collateralized agreements and financings are described in Note 2 of our 2022 Form 10-K.

Our reverse repurchase agreements, repurchase agreements, securities borrowing, and securities lending transactions are governed by master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course, as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the parties to the transaction. For financial statement purposes, we do not offset our reverse repurchase agreements, repurchase agreements, securities borrowed, and securities loaned because the conditions for netting as specified by GAAP are not met. Although not offset on the Condensed Consolidated Statements of Financial Condition, these transactions are included in the following table.


	Collateralized agreements						Collateralized financings
$ in millions	Reverse repurchase agreements		Securities borrowed		Total		Repurchase agreements		Securities loaned		Total
March 31, 2023
Gross amounts of recognized assets/liabilities	$	167	$	212	$	379	$	150	$	177	$	327
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition	—		—		—		—		—		—
Net amounts included in the Condensed Consolidated Statements of Financial Condition	167		212		379		150		177		327
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	(167)		(211)		(378)		(150)		(173)		(323)
Net amounts	$	—	$	1	$	1	$	—	$	4	$	4
September 30, 2022
Gross amounts of recognized assets/liabilities	$	367	$	337	$	704	$	294	$	172	$	466
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition	—		—		—		—		—		—
Net amounts included in the Condensed Consolidated Statements of Financial Condition	367		337		704		294		172		466
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition	(367)		(327)		(694)		(294)		(162)		(456)
Net amounts	$	—	$	10	$	10	$	—	$	10	$	10

The total amount of collateral received under reverse repurchase agreements and the total amount of collateral posted under repurchase agreements exceeds the carrying value of these agreements on our Condensed Consolidated Statements of Financial Condition.

Repurchase agreements and securities loaned accounted for as secured borrowings

The following table presents the remaining contractual maturity of repurchase agreements and securities lending transactions accounted for as secured borrowings.


$ in millions	Overnight and continuous		Up to 30 days		30-90 days		Greater than 90 days		Total
March 31, 2023
Repurchase agreements:
Government and agency obligations	$	115	$	—	$	—	$	—	$	115
Agency MBS and agency CMOs	35		—		—		—		35
Total repurchase agreements	150		—		—		—		150
Securities loaned:
Equity securities	177		—		—		—		177
Total collateralized financings	$	327	$	—	$	—	$	—	$	327
September 30, 2022
Repurchase agreements:
Government and agency obligations	$	183	$	—	$	—	$	—	$	183
Agency MBS and agency CMOs	111		—		—		—		111
Total repurchase agreements	294		—		—		—		294
Securities loaned:
Equity securities	172		—		—		—		172
Total collateralized financings	$	466	$	—	$	—	$	—	$	466

Collateral received and pledged

We receive cash and securities as collateral, primarily in connection with reverse repurchase agreements, securities borrowing agreements, derivative transactions, and client margin loans. The collateral we receive reduces our credit exposure to individual counterparties.

In many cases, we are permitted to deliver or repledge financial instruments we have received as collateral to satisfy our collateral requirements under our repurchase agreements, securities lending agreements or other secured borrowings, to satisfy deposit requirements with clearing organizations, or to otherwise meet either our or our clients’ settlement requirements.

The following table presents financial instruments at fair value that we received as collateral, were not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were delivered or repledged, to satisfy one of our purposes previously described.


$ in millions	March 31, 2023		September 30, 2022
Collateral we received that was available to be delivered or repledged	$	2,993	$	3,812
Collateral that we delivered or repledged	$	766	$	947

Encumbered assets

We pledge certain of our assets to collateralize repurchase agreements or other secured borrowings, maintain lines of credit, to maintain our ability to hold certain deposits, or to satisfy our collateral or settlement requirements with counterparties or clearing organizations who may or may not have the right to deliver or repledge such instruments. We pledge certain of our bank loans and available-for-sale securities with the FHLB as security for both the repayment of certain borrowings and to secure capacity for additional borrowings as needed. We also pledge certain loans and available-for-sale securities with the FRB to be eligible to participate in the Federal Reserve’s discount window program and to participate in certain deposit programs. During the quarter ended March 31, 2023, Raymond James Bank increased its borrowing capacity with the FHLB through the pledge of additional available-for-sale securities. The FHLB does not have the ability to sell or repledge such securities until they are borrowed against. For additional information regarding our outstanding FHLB advances see Note 14.

The following table presents information about our assets that have been pledged for one of the purposes previously described.


$ in millions	March 31, 2023		September 30, 2022
Had the right to deliver or repledge	$	982	$	1,276
Did not have the right to deliver or repledge	$	4,753	$	63
Bank loans, net pledged with the:
FHLB	$	8,768	$	8,009
FRB	793		791
Total bank loans, net pledged with the FHLB and FRB	$	9,561	$	8,800