Unsecured Borrowings

9 Months Ended

Sep. 30, 2022

The table below presents information about unsecured borrowings.


	As of
	September		December
$ in millions	2022		2021
Unsecured short-term borrowings	$	51,850	$	46,955
Unsecured long-term borrowings	239,965		254,092
Total	$	291,815	$	301,047

Unsecured Short-Term Borrowings

Unsecured short-term borrowings includes the portion of unsecured long-term borrowings maturing within one year of the financial statement date and unsecured long-term borrowings that are redeemable within one year of the financial statement date at the option of the holder.

The firm accounts for certain hybrid financial instruments at fair value under the fair value option. See Note 10 for further information about unsecured short-term borrowings that are accounted for at fair value. In addition, the firm designates certain derivatives as fair value hedges to convert a portion of its unsecured short-term borrowings not accounted for at fair value from fixed-rate obligations into floating-rate obligations. The carrying value of unsecured short-term borrowings that are not recorded at fair value generally approximates fair value due to the short-term nature of the obligations. As these unsecured short-term borrowings are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these borrowings been included in the firm’s fair value hierarchy, substantially all would have been classified in level 2 as of both September 2022 and December 2021.

The table below presents information about unsecured short-term borrowings.


	As of
	September			December
$ in millions	2022			2021
Current portion of unsecured long-term borrowings	$	28,306		$	18,118
Hybrid financial instruments	16,322			20,073
Commercial paper	5,152			6,730
Other unsecured short-term borrowings	2,070			2,034
Total unsecured short-term borrowings	$	51,850		$	46,955
Weighted average interest rate	2.74		%	2.34		%

In the table above, the weighted average interest rates for these borrowings include the effect of hedging activities and exclude unsecured short-term borrowings accounted for at fair value under the fair value option. See Note 7 for further information about hedging activities.

Unsecured Long-Term Borrowings

The table below presents information about unsecured long-term borrowings.


$ in millions	U.S. Dollar		Non-U.S. Dollar		Total
As of September 2022
Fixed-rate obligations	$	119,962	$	35,620	$	155,582
Floating-rate obligations	55,812		28,571		84,383
Total	$	175,774	$	64,191	$	239,965
As of December 2021
Fixed-rate obligations	$	126,534	$	46,408	$	172,942
Floating-rate obligations	50,995		30,155		81,150
Total	$	177,529	$	76,563	$	254,092

In the table above:

•Unsecured long-term borrowings consists principally of senior borrowings, which have maturities extending through 2065.

•Floating-rate obligations includes equity-linked, credit-linked and indexed instruments. Floating interest rates are generally based on SOFR, USD LIBOR, or Euro Interbank Offered Rate.

•U.S. dollar-denominated debt had interest rates ranging from 0.63% to 6.75% (with a weighted average rate of 3.39%) as of September 2022 and 0.48% to 7.68% (with a weighted average rate of 3.34%) as of December 2021. These rates exclude unsecured long-term borrowings accounted for at fair value under the fair value option.

•Non-U.S. dollar-denominated debt had interest rates ranging from 0.13% to 13.00% (with a weighted average rate of 1.84%) as of September 2022 and 0.13% to 13.00% (with a weighted average rate of 1.86%) as of December 2021. These rates exclude unsecured long-term borrowings accounted for at fair value under the fair value option.

The table below presents unsecured long-term borrowings by maturity.


	As of
$ in millions	September 2022
2023	$	14,609
2024	40,828
2025	34,203
2026	20,824
2027	27,937
2028 - thereafter	101,564
Total	$	239,965

In the table above:

•Unsecured long-term borrowings maturing within one year of the financial statement date and unsecured long-term borrowings that are redeemable within one year of the financial statement date at the option of the holder are excluded as they are included in unsecured short-term borrowings.

•Unsecured long-term borrowings that are repayable prior to maturity at the option of the firm are reflected at their contractual maturity dates.

•Unsecured long-term borrowings that are redeemable prior to maturity at the option of the holder are reflected at the earliest dates such options become exercisable.

•Unsecured long-term borrowings included $(15.25) billion of adjustments to the carrying value of certain unsecured long-term borrowings resulting from the application of hedge accounting by year of maturity as follows: $(9) million in 2023, $(513) million in 2024, $(1.26) billion in 2025, $(801) million in 2026, $(1.66) billion in 2027 and $(11.01) billion in 2028 and thereafter.

The firm designates certain derivatives as fair value hedges to convert a portion of fixed-rate unsecured long-term borrowings not accounted for at fair value into floating-rate obligations. See Note 7 for further information about hedging activities.

The table below presents unsecured long-term borrowings, after giving effect to such hedging activities.


	As of
	September		December
$ in millions	2022		2021
Fixed-rate obligations:
At fair value	$	5,692	$	4,863
At amortized cost	5,411		30,370
Floating-rate obligations:
At fair value	59,666		47,527
At amortized cost	169,196		171,332
Total	$	239,965	$	254,092

In the table above, the aggregate amounts of unsecured long-term borrowings had weighted average interest rates of 3.80% (4.30% related to fixed-rate obligations and 3.78% related to floating-rate obligations) as of September 2022 and 1.60% (2.25% related to fixed-rate obligations and 1.48% related to floating-rate obligations) as of December 2021. These rates exclude unsecured long-term borrowings accounted for at fair value under the fair value option.

The carrying value of unsecured long-term borrowings for which the firm did not elect the fair value option was $174.61 billion as of September 2022 and $201.70 billion as of December 2021. The estimated fair value of such unsecured long-term borrowings was $170.27 billion as of September 2022 and $209.37 billion as of December 2021. As these borrowings are not accounted for at fair value, they are not included in the firm’s fair value hierarchy in Notes 4 through 10. Had these borrowings been included in the firm’s fair value hierarchy, substantially all would have been classified in level 2 as of both September 2022 and December 2021.

Subordinated Borrowings

Unsecured long-term borrowings includes subordinated debt and junior subordinated debt. Subordinated debt that matures within one year is included in unsecured short-term borrowings. Junior subordinated debt is junior in right of payment to other subordinated borrowings, which are junior to senior borrowings. Long-term subordinated debt had maturities ranging from 2025 to 2045 as of both September 2022 and December 2021.

The table below presents information about subordinated borrowings.


$ in millions	Par Amount		Carrying Value		Rate
As of September 2022
Subordinated debt	$	12,118	$	11,745	4.54	%
Junior subordinated debt	968		1,052		3.76	%
Total	$	13,086	$	12,797	4.49	%
As of December 2021
Subordinated debt	$	12,437	$	15,571	1.74	%
Junior subordinated debt	968		1,321		1.31	%
Total	$	13,405	$	16,892	1.71	%

In the table above, the rate is the weighted average interest rate for these borrowings (excluding borrowings accounted for at fair value under the fair value option), including the effect of fair value hedges used to convert fixed-rate obligations into floating-rate obligations. See Note 7 for further information about hedging activities.

Junior Subordinated Debt

In 2004, Group Inc. issued $2.84 billion of junior subordinated debt to Goldman Sachs Capital I, a Delaware statutory trust. Goldman Sachs Capital I issued $2.75 billion of guaranteed preferred beneficial interests (Trust Preferred securities) to third parties and $85 million of common beneficial interests to Group Inc. As of both September 2022 and December 2021, the outstanding par amount of junior subordinated debt held by Goldman Sachs Capital I was $968 million and the outstanding par amount of Trust Preferred securities and common beneficial interests issued by Goldman Sachs Capital I was $939 million and $29 million, respectively. Goldman Sachs Capital I is a wholly-owned finance subsidiary of the firm for regulatory and legal purposes but is not consolidated for accounting purposes.

The firm pays interest semi-annually on the junior subordinated debt at an annual rate of 6.345% and the debt matures on February 15, 2034. The coupon rate and the payment dates applicable to the beneficial interests are the same as the interest rate and payment dates for the junior subordinated debt. The firm has the right, from time to time, to defer payment of interest on the junior subordinated debt, and therefore cause payment on Goldman Sachs Capital I’s preferred beneficial interests to be deferred, in each case up to ten consecutive semi-annual periods. During any such deferral period, the firm will not be permitted to, among other things, pay dividends on or make certain repurchases of its common stock. Goldman Sachs Capital I is not permitted to pay any distributions on the common beneficial interests held by Group Inc. unless all dividends payable on the preferred beneficial interests have been paid in full.