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Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)June 30, 2021December 31, 2020
Domestic(1):
Commercial and financial:
Fund Finance(2)
$12,029 $11,531 
Leveraged loans3,385 2,923 
Overdrafts2,196 1,894 
Other(3)
2,056 2,688 
Commercial real estate2,334 2,096 
Total domestic22,000 21,132 
Foreign(1):
Commercial and financial:
Fund Finance(2)
6,003 4,432 
Leveraged loans1,169 1,242 
Overdrafts1,532 1,088 
Other(3)
— 31 
Total foreign8,704 6,793 
Total loans(2)
30,704 27,925 
Allowance for credit losses(100)(122)
Loans, net of allowance$30,604 $27,803 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $6,419 million loans to real money funds, $8,710 million private equity capital call finance loans, $1,043 million loans to business development companies and $1,580 million collateralized loan obligations in loan form as of June 30, 2021, compared to $6,391 million loans to real money funds, $8,380 million private equity capital call finance loans and $821 million loans to business development companies as of December 31, 2020.
(3) Includes $1,406 million securities finance loans, $629 million loans to municipalities and $21 million other loans as of June 30, 2021 and $1,911 million securities finance loans, $754 million loans to municipalities and $54 million other loans as of December 31, 2020.
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator
The following tables present our recorded loans to counterparties by risk rating, as noted above, as of the dates indicated:
June 30, 2021Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$23,243 $1,912 $25,155 
Speculative4,909 422 5,331 
Special mention110 — 110 
Substandard92 — 92 
Doubtful16 — 16 
Total(1)
$28,370 $2,334 $30,704 
December 31, 2020Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$20,859 $1,724 $22,583 
Speculative4,852 372 5,224 
Special mention67 — 67 
Substandard34 — 34 
Doubtful17 — 17 
Total(1)
$25,829 $2,096 $27,925 
(1) Loans Include $3,728 million and $2,982 million of overdrafts as of June 30, 2021 and December 31, 2020 respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of June 30, 2021. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.
(In millions)20212020201920182017PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$2,309 $15 $409 $4 $157 $— $12,937 $15,831 
Speculative769 507 745 681 509 69 376 3,656 
Special mention— — 48 28 34 — — 110 
Substandard— — 43 26 — — — 69 
Total commercial and financing$3,078 $522 $1,245 $739 $700 $69 $13,313 $19,666 
Commercial real estate:
Risk Rating:
Investment grade$238 $129 $383 $688 $277 $197 $— $1,912 
Speculative120 49 166 58 — 29 — $422 
Total commercial real estate$358 $178 $549 $746 $277 $226 $— $2,334 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$2,929 $— $— $— $— $— $4,483 $7,412 
Speculative244 197 347 225 169 31 40 1,253 
Substandard— — — 23 — — — 23 
Doubtful— — — — 16 — — 16 
Total commercial and financing$3,173 $197 $347 $248 $185 $31 $4,523 $8,704 
Total loans$6,609 $897 $2,141 $1,733 $1,162 $326 $17,836 $30,704 
(1) Any reserve associated with accrued interest is not material. As of June 30, 2021, accrued interest receivable of $73 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2020:


(In millions)20202019201820172016PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,894 $388 $4 $167 $200 $— $12,836 $15,489 
Speculative432 942 822 610 43 — 597 3,446 
Special mention— 28 — 39 — — — 67 
Substandard— 5 — — 29 — — 34 
Total commercial and financing$2,326 $1,363 $826 $816 $272 $— $13,433 $19,036 
Commercial real estate:
Risk Rating:
Investment grade$178 $383 $688 $277 $197 $— $— $1,723 
Speculative120 166 58 — — 29 — $373 
Total commercial real estate$298 $549 $746 $277 $197 $29 $— $2,096 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$1,028 $— $— $— $— $— $4,343 $5,371 
Speculative283 401 346 162 26 66 121 1,405 
Doubtful— — — 17 — — — 17 
Total commercial and financing$1,311 $401 $346 $179 $26 $66 $4,464 $6,793 
Total loans$3,935 $2,313 $1,918 $1,272 $495 $95 $17,897 $27,925 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2020, accrued interest receivable of $72 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
Schedule of Activity in the Allowance for Loan Losses
The following tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended June 30, 2021
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$92 $12 $14 $2 $15 $— $135 
Charge-offs(1)— — — — — (1)
Provision(19)— — — 4 — (15)
Currency translation2 — — — — — 2 
Ending balance$74 $12 $14 $2 $19 $— $121 
(1) Includes $10 million allowance for credit losses on Fund Finance loans and $2 million on other loans.
Six Months Ended June 30, 2021
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$97 $17 $8 $3 $22 $1 $148 
Charge-offs(1)— — — — — (1)
Provision(20)(5)6 (1)(3)(1)(24)
Currency translation(2)— — — — — (2)
Ending balance$74 $12 $14 $2 $19 $— $121 
(1) Includes $10 million allowance for credit losses on Fund Finance loans and $2 million on other loans.
.
Three Months Ended June 30, 2020
Commercial and Financial
(In millions)Leveraged LoansOther LoansCommercial Real EstateOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$83 $10 $4 $22 $5 $124 
Charge-offs(14)— — — — (14)
Provision43 10 4 (4)(1)52 
FX translation1 — — — — 1 
Ending balance$113 $20 $8 $18 $4 $163 

Six Months Ended June 30, 2020
Commercial and Financial
(In millions)Leveraged LoansOther LoansCommercial Real EstateOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$61 $10 $2 $19 $1 $93 
Charge-offs(19)— — — — (19)
Provision70 10 6 (1)3 88 
FX translation1 — — — — 1 
Ending balance$113 $20 $8 $18 $4 $163