•	Securities borrowed of $29.77 billion as of March 2020 and $26.28 billion as of December 2019, and securities loaned of $1.15 billion as of March 2020 and $714 million as of December 2019 were at fair value.

Resale and Repurchase Agreements

A resale agreement is a transaction in which the firm purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller at a stated price plus accrued interest at a future date.

A repurchase agreement is a transaction in which the firm sells financial instruments to a buyer, typically in exchange for cash, and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from the buyer at a stated price plus accrued interest at a future date.

Even though repurchase and resale agreements (including “repos- and

reverses-to-maturity”)

involve the legal transfer of ownership of financial instruments, they are accounted for as financing arrangements because they require the financial instruments to be repurchased or resold before or at the maturity of the agreement. The financial instruments purchased or sold in resale and repurchase agreements typically include U.S. government and agency, and investment-grade sovereign obligations.

The firm receives financial instruments purchased under resale agreements and makes delivery of financial instruments sold under repurchase agreements. To mitigate credit exposure, the firm monitors the market value of these financial instruments on a daily basis, and delivers or obtains additional collateral due to changes in the market value of the financial instruments, as appropriate. For resale agreements, the firm typically requires collateral with a fair value approximately equal to the carrying value of the relevant assets in the consolidated balance sheets.

Securities Borrowed and Loaned Transactions

In a securities borrowed transaction, the firm borrows securities from a counterparty in exchange for cash or securities. When the firm returns the securities, the counterparty returns the cash or securities. Interest is generally paid periodically over the life of the transaction.

In a securities loaned transaction, the firm lends securities to a counterparty in exchange for cash or securities. When the counterparty returns the securities, the firm returns the cash or securities posted as collateral. Interest is generally paid periodically over the life of the transaction.

The firm receives securities borrowed and makes delivery of securities loaned. To mitigate credit exposure, the firm monitors the market value of these securities on a daily basis, and delivers or obtains additional collateral due to changes in the market value of the securities, as appropriate. For securities borrowed transactions, the firm typically requires collateral with a fair value approximately equal to the carrying value of the securities borrowed transaction.

Securities borrowed and loaned within FICC financing are recorded at fair value under the fair value option. See Note 10 for further information about securities borrowed and loaned accounted for at fair value.

Securities borrowed and loaned within Equities financing are recorded based on the amount of cash collateral advanced or received plus accrued interest. As these agreements generally can be terminated on demand, they exhibit little, if any, sensitivity to changes in interest rates. Therefore, the carrying value of such agreements approximates fair value. As these agreements 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 agreements been included in the firm’s fair value hierarchy, they would have been classified in level 2 as of both March 2020 and December 2019.

Offsetting Arrangements

The table below presents resale and repurchase agreements and securities borrowed and loaned transactions included in the consolidated balance sheets, as well as the amounts not offset in the consolidated balance sheets.



	Assets					Liabilities

$ in millions		Resale agreements		Securities borrowed			Repurchase agreements		Securities loaned
As of March 2020
Included in the consolidated balance sheets
Gross carrying value		$ 199,157		$ 125,340			$ 162,688		$ 17,539
Counterparty netting		(66,824	)	(3,670	)		(66,824	)	(3,670	)
Total		132,333		121,670			95,864		13,869
Amounts not offset
Counterparty netting		(7,393	)	(4,043	)		(7,393	)	(4,043	)
Collateral		(121,885	)	(110,661	)		(87,681	)	(9,826	)
Total		$ 3,055		$ 6,966			$ 790		$ –
As of December 2019
Included in the consolidated balance sheets
Gross carrying value		$ 152,982		$ 140,677			$ 185,047		$ 19,591
Counterparty netting		(67,291	)	(4,606	)		(67,291	)	(4,606	)
Total		85,691		136,071			117,756		14,985
Amounts not offset
Counterparty netting		(3,058	)	(2,211	)		(3,058	)	(2,211	)
Collateral		(78,528	)	(127,901	)		(114,065	)	(12,614	)
Total		$ 4,105		$ 5,959			$ 633		$ 160

In the table above:

•	Substantially all of the gross carrying values of these arrangements are subject to enforceable netting agreements.

•	Where the firm has received or posted collateral under credit support agreements, but has not yet determined such agreements are enforceable, the related collateral has not been netted.

•	Amounts not offset includes counterparty netting that does not meet the criteria for netting under U.S. GAAP and the fair value of collateral received or posted subject to enforceable credit support agreements.

Gross Carrying Value of Repurchase Agreements and Securities Loaned

The table below presents the gross carrying value of repurchase agreements and securities loaned by class of collateral pledged.



$ in millions	Repurchase agreements		Securities loaned
As of March 2020
Money market instruments		$ 719		$ –
U.S. government and agency obligations		81,270		–
Non-U.S. government and agency obligations		61,443		1,032
Securities backed by commercial real estate		60		–
Securities backed by residential real estate		450		–
Corporate debt securities		6,875		74
State and municipal obligations		222		–
Other debt obligations		1,061		–
Equity securities		10,588		16,433
Total		$162,688		$17,539
As of December 2019
Money market instruments		$ 158		$ –
U.S. government and agency obligations		112,903		–
Non-U.S. government and agency obligations		55,575		1,051
Securities backed by commercial real estate		210		–
Securities backed by residential real estate		1,079		–
Corporate debt securities		6,857		122
State and municipal obligations		242		–
Other debt obligations		196		–
Equity securities		7,827		18,418
Total		$185,047		$19,591

The table below presents the gross carrying value of repurchase agreements and securities loaned by maturity.



	As of March 2020

$ in millions		Repurchase agreements	Securities loaned
No stated maturity and overnight		$ 42,764	$13,522
2 - 30 days		68,223	–
31 - 90 days		29,421	972
91 days - 1 year		20,504	3,045
Greater than 1 year		1,776	–
Total		$162,688	$17,539

In the table above:

•	Repurchase agreements and securities loaned that are repayable prior to maturity at the option of the firm are reflected at their contractual maturity dates.

•	Repurchase agreements and securities loaned that are redeemable prior to maturity at the option of the holder are reflected at the earliest dates such options become exercisable.

Other Secured Financings

In addition to repurchase agreements and securities loaned transactions, the firm funds certain assets through the use of other secured financings and pledges financial instruments and other assets as collateral in these transactions. These other secured financings consist of:

•	Liabilities of consolidated VIEs;

•	Transfers of assets accounted for as financings rather than sales (e.g., pledged commodities, bank loans and mortgage whole loans);

•	Other structured financing arrangements; and

•	Collateralized central bank financings.

Other secured financings included nonrecourse arrangements. Nonrecourse other secured financings were $18.02 billion as of March 2020 and $10.91 billion as of December 2019.

The firm has elected to apply the fair value option to substantially all other secured financings because the use of fair value eliminates

non-economic

volatility in earnings that would arise from using different measurement attributes. See Note 10 for further information about other secured financings that are accounted for at fair value.

Other secured financings that are not recorded at fair value are recorded based on the amount of cash received plus accrued interest, which generally approximates fair value. As these financings 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 financings been included in the firm’s fair value hierarchy, they would have been primarily classified in level 2 as of both March 2020 and December 2019.

The table below presents information about other secured financings.



$ in millions	U.S. Dollar	Non-U.S. Dollar	Total
As of March 2020
Other secured financings (short-term):
At fair value	$13,248	$ 4,725	$17,973
At amortized cost	6,123	–	6,123
Other secured financings (long-term):
At fair value	6,665	5,353	12,018
At amortized cost	396	686	1,082
Total other secured financings	$26,432	$10,764	$37,196
Other secured financings collateralized by:
Financial instruments	$19,694	$ 8,629	$28,323
Other assets	$ 6,738	$ 2,135	$ 8,873
As of December 2019
Other secured financings (short-term):
At fair value	$ 2,754	$ 4,441	$ 7,195
At amortized cost	129	–	129
Other secured financings (long-term):
At fair value	7,402	3,474	10,876
At amortized cost	397	680	1,077
Total other secured financings	$10,682	$ 8,595	$19,277
Other secured financings collateralized by:
Financial instruments	$ 4,826	$ 7,189	$12,015
Other assets	$ 5,856	$ 1,406	$ 7,262

In the table above:

•	Short-term other secured financings includes financings maturing within one year of the financial statement date and financings that are redeemable within one year of the financial statement date at the option of the holder.

•	U.S. dollar-denominated short-term other secured financings at amortized cost had a weighted average interest rate of 0.32% as of March 2020 and 4.32% as of December 2019. These rates include the effect of hedging activities.

•	U.S. dollar-denominated long-term other secured financings at amortized cost had a weighted average interest rate of 2.79% as of both March 2020 and December 2019. These rates include the effect of hedging activities.

•

Total other secured financings included $1.48 billion as of March 2020 and $2.16 billion as of December 2019 related to transfers of financial assets accounted for as financings rather than sales. Such financings were collateralized by financial assets of $1.38 billion as of March 2020 and $2.21 billion as of December 2019, both primarily included in trading assets.

•

Other secured financings collateralized by financial instruments included $24.62 billion as of March 2020 and $9.09 billion as of December 2019 of other secured financings collateralized by trading assets and loans, and included $3.70 billion as of March 2020 and $2.93 billion as of December 2019 of other secured financings collateralized by financial instruments received as collateral and repledged.

The table below presents other secured financings by maturity.



$ in millions			As of March 2020
Other secured financings (short-term)			$24,096
Other secured financings (long-term):
2021			3,460
2022			2,589
2023			1,606
2024			1,490
2025			492
2026 - thereafter			3,463
Total other secured financings (long-term)			13,100
Total other secured financings			$37,196

In the table above:

•	Long-term other secured financings that are repayable prior to maturity at the option of the firm are reflected at their contractual maturity dates.

•	Long-term other secured financings that are redeemable prior to maturity at the option of the holder are reflected at the earliest dates such options become exercisable.

Collateral Received and Pledged

The firm receives cash and securities (e.g., U.S. government and agency obligations, other sovereign and corporate obligations, as well as equity securities) as collateral, primarily in connection with resale agreements, securities borrowed, derivative transactions and customer margin loans. The firm obtains cash and securities as collateral on an upfront or contingent basis for derivative instruments and collateralized agreements to reduce its credit exposure to individual counterparties.

In many cases, the firm is permitted to deliver or repledge financial instruments received as collateral when entering into repurchase agreements and securities loaned transactions, primarily in connection with secured client financing activities. The firm is also permitted to deliver or repledge these financial instruments in connection with other secured financings, collateralized derivative transactions and firm or customer settlement requirements.

The firm also pledges certain trading assets in connection with repurchase agreements, securities loaned transactions and other secured financings, and other assets (substantially all real estate and cash) in connection with other secured financings to counterparties who may or may not have the right to deliver or repledge them.

The table below presents financial instruments at fair value received as collateral that were available to be delivered or repledged and were delivered or repledged.



	As of

$ in millions		March 2020	December 2019
Collateral available to be delivered or repledged		$689,662	$661,490
Collateral that was delivered or repledged		$557,726	$558,634

In the table above, collateral available to be delivered or repledged excluded $14.65 billion as of March 2020 and $6.15 billion as of December 2019 of securities received under resale agreements and securities borrowed transactions that contractually had the right to be delivered or repledged, but were segregated for regulatory and other purposes.

The table below presents information about assets pledged.



	As of

$ in millions		March 2020	December 2019
Pledged to counterparties that had the right to deliver or repledge
Trading assets		$59,128	$ 66,605
Investments		$10,765	$ 10,968
Pledged to counterparties that did not have the right to deliver or repledge
Trading assets		$92,201	$101,578
Investments		$ 8,098	$ 849
Loans		$34,933	$ 6,628
Other assets		$14,573	$ 12,337

The firm also segregated securities included in trading

assets

and

investments

of $39.32 billion as of March 2020 and $20.61 billion as of December 2019 for regulatory and other purposes. See Note 3 for information about segregated cash.