Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2018

Loans and Leases Receivable Disclosure [Abstract]

Net Loans

The following table presents our recorded investment in loans and leases, by segment, as of the dates indicated:

(In millions)	September 30, 2018			December 31, 2017
Domestic:
Commercial and financial:
Loans to investment funds	$	12,863		$	13,618
Senior secured bank loans	3,150			2,923
Loans to municipalities	908			2,105
Other	40			50
Commercial real estate	602			98
Lease financing	39			267
Total domestic	17,602			19,061
Non-U.S.:
Commercial and financial:
Loans to investment funds	4,819			3,213
Senior secured bank loans	740			624
Lease financing	211			396
Total non-U.S.	5,770			4,233
Total loans and leases	23,372			23,294
Allowance for loan and lease losses	(60		)	(54		)
Loans and leases, net of allowance	$	23,312		$	23,240

Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator

The following tables present our recorded investment in each class of loans and leases by credit quality indicator as of the dates indicated:

September 30, 2018	Commercial and Financial		Commercial Real Estate		Lease Financing		Total Loans and Leases
(In millions)
Investment grade(1)	$	17,753	$	602	$	250	$	18,605
Speculative(2)	4,728		—		—		4,728
Special mention(3)	39		—		—		39
Total	$	22,520	$	602	$	250	$	23,372

December 31, 2017	Commercial and Financial		Commercial Real Estate		Lease Financing		Total Loans and Leases
(In millions)
Investment grade(1)	$	17,866	$	98	$	663	$	18,627
Speculative(2)	4,638		—		—		4,638
Special mention(3)	29		—		—		29
Total	$	22,533	$	98	$	663	$	23,294

⁽¹⁾ Investment-grade loans and leases consist of counterparties with strong credit quality and low expected credit risk and probability of default. Ratings apply to counterparties with a strong capacity to support the timely repayment of any financial commitment.

⁽²⁾ Speculative loans and leases consist of counterparties that face ongoing uncertainties or exposure to business, financial, or economic downturns. However, these counterparties may have financial flexibility or access to financial alternatives, which allow for financial commitments to be met.

⁽³⁾ Special mention loans and leases consist of counterparties with potential weakness that, if uncorrected, may result in deterioration of repayment prospects.

Schedule of Activity in the Allowance for Loan Losses

The following table presents activity in the allowance for loan and lease losses for the periods indicated:

	Three Months Ended September 30,
(In millions)	2018			2017
Allowance for loan and lease losses:
Beginning balance	$	55		$	54
Provision for loan and lease losses	5			3
Ending balance	$	60		$	57
	Nine Months Ended September 30,
(In millions)	2018			2017
Allowance for loan and lease losses:
Beginning balance	$	54		$	53
Provision for loan and lease losses	7			4
Charge-offs	(1		)	—
Ending balance	$	60		$	57