Financial Instruments Owned, at Fair Value and Financial Instruments Sold, But Not Yet Purchased, at Fair Value (Tables)

3 Months Ended

Mar. 31, 2017

Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased

The table below presents the firm’s financial instruments owned, at fair value, and financial instruments sold, but not yet purchased, at fair value.


$ in millions	Financial Instruments Owned	Financial Instruments Sold, But Not Yet Purchased
As of March 2017
Money market instruments	$ 1,735	$ —

U.S. government and federal agency obligations	71,035	20,181

Non-U.S. government and agency obligations	35,614	23,285

Loans and securities backed by:
Commercial real estate	3,602	—

Residential real estate	12,133	—

Corporate loans and debt securities	31,721	7,258

State and municipal obligations	1,108	—

Other debt obligations	1,364	1

Equity securities	95,539	26,195

Commodities	3,643	—

Investments in funds at NAV	6,183	—
Subtotal	263,677	76,920

Derivatives	45,194	39,007
Total	$308,871	$115,927
As of December 2016
Money market instruments	$ 1,319	$ —

U.S. government and federal agency obligations	57,657	16,627

Non-U.S. government and agency obligations	29,381	20,502

Loans and securities backed by:
Commercial real estate	3,842	—

Residential real estate	12,195	3

Corporate loans and debt securities	28,659	6,570

State and municipal obligations	1,059	—

Other debt obligations	1,358	1

Equity securities	94,692	25,941

Commodities	5,653	—

Investments in funds at NAV	6,465	—
Subtotal	242,280	69,644

Derivatives	53,672	47,499
Total	$295,952	$117,143

In the table above:

•

Money market instruments include commercial paper, certificates of deposit and time deposits, substantially all of which have a maturity of less than one year.

•

Equity securities include public and private equities, exchange-traded funds and convertible debentures.

Gains and Losses from Market Making and Other Principal Transactions

The table below presents “Market making” revenues by major product type, as well as “Other principal transactions” revenues.


	Three Months Ended March
$ in millions		2017		2016
Interest rates		$1,364		$1,177

Credit		544		618

Currencies		(318	)	(908	)

Equities		578		691

Commodities		250		284
Market making		2,418		1,862
Other principal transactions		1,221		(49	)
Total		$3,639		$1,813

In the table above:

•

Gains/(losses) include both realized and unrealized gains and losses, and are primarily related to the firm’s financial instruments owned, at fair value and financial instruments sold, but not yet purchased, at fair value, including both derivative and non-derivative financial instruments.

•

Gains/(losses) exclude related interest income and interest expense. See Note 23 for further information about interest income and interest expense.

•

Gains/(losses) on other principal transactions are included in the firm’s Investing & Lending segment. See Note 25 for net revenues, including net interest income, by product type for Investing & Lending, as well as the amount of net interest income included in Investing & Lending.

•

Gains/(losses) are not representative of the manner in which the firm manages its business activities because many of the firm’s market-making and client facilitation strategies utilize financial instruments across various product types. Accordingly, gains or losses in one product type frequently offset gains or losses in other product types. For example, most of the firm’s longer-term derivatives across product types are sensitive to changes in interest rates and may be economically hedged with interest rate swaps. Similarly, a significant portion of the firm’s cash instruments and derivatives across product types has exposure to foreign currencies and may be economically hedged with foreign currency contracts.