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Investment Securities
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
Investment securities held by us are classified as either trading account assets, AFS, HTM or equity securities held at fair value at the time of purchase and reassessed periodically, based on management’s intent. For additional information on our accounting for investment securities, refer to page 140 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2023 Form 10-K.
Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading assets are recorded in other fee revenue in our consolidated statement of income. AFS securities are carried at fair value, with any allowance for credit losses recorded through the consolidated statement of income and after-tax net unrealized gains and losses are recorded in AOCI. Gains or losses realized on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) related to investment securities, net, in our consolidated statement of income. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts, with any allowance for credit losses recorded through the consolidated statement of income.
The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated:
 March 31, 2024December 31, 2023
 Amortized
Cost		Gross
Unrealized		Fair
Value		Amortized
Cost		Gross
Unrealized		Fair
Value
(In millions)GainsLossesGainsLosses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$11,831 $42 $144 $11,729 $8,427 $39 $165 $8,301 
Mortgage-backed securities(1)
11,208 30 149 11,089 10,870 49 164 10,755 
Total U.S. Treasury and federal agencies23,039 72 293 22,818 19,297 88 329 19,056 
Non-U.S. debt securities:
Mortgage-backed securities1,961 3 4 1,960 1,861 3 7 1,857 
Asset-backed securities(2)
2,168 4 7 2,165 2,148 2 13 2,137 
Non-U.S. sovereign, supranational and non-U.S. agency15,410 30 119 15,321 15,159 73 132 15,100 
Other(3)
2,690 30 29 2,691 2,733 39 37 2,735 
Total non-U.S. debt securities22,229 67 159 22,137 21,901 117 189 21,829 
Asset-backed securities:
Student loans(4)
107 1 — 108 113 1 — 114 
Collateralized loan obligations(5)
2,749 4 2 2,751 2,530 3 6 2,527 
Non-agency CMBS and RMBS(6)
212 1 1 212 252 — 3 249 
Other90 1 — 91 90 — — 90 
Total asset-backed securities3,158 7 3 3,162 2,985 4 9 2,980 
State and political subdivisions343 — 3 340 356 — 1 355 
Other U.S. debt securities(7)
188 — 5 183 314 — 8 306 
Total available-for-sale securities(8)(9)
$48,957 $146 $463 $48,640 $44,853 $209 $536 $44,526 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$6,091 $— $163 $5,928 $8,584 $— $163 $8,421 
Mortgage-backed securities(10)
38,698 2 5,759 32,941 39,472 7 5,271 34,208 
Total U.S. Treasury and federal agencies44,789 2 5,922 38,869 48,056 7 5,434 42,629 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and non-U.S. agency5,064 2 153 4,913 5,757 8 153 5,612 
Total non-U.S. debt securities5,064 2 153 4,913 5,757 8 153 5,612 
Asset-backed securities:
Student loans(4)
3,055 4 42 3,017 3,298 2 62 3,238 
Non-agency CMBS and RMBS(11)
6 18 — 24 6 18 — 24 
Total asset-backed securities3,061 22 42 3,041 3,304 20 62 3,262 
Total held-to-maturity securities(8)(12)
$52,914 $26 $6,117 $46,823 $57,117 $35 $5,649 $51,503 
(1) As of March 31, 2024 and December 31, 2023, the total fair value included $5.24 billion and $5.54 billion, respectively, of agency CMBS and $5.85 billion and $5.21 billion, respectively, of agency MBS.
(2) As of March 31, 2024 and December 31, 2023, the fair value includes non-U.S. collateralized loan obligations of $1.00 billion and $1.02 billion, respectively.
(3) As of March 31, 2024 and December 31, 2023, the fair value includes non-U.S. corporate bonds of $2.35 billion and $2.36 billion, respectively.
(4) Primarily comprised of securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans.
(5) Excludes collateralized loan obligations in loan form. Refer to Note 4 for additional information.
(6) Consists entirely of non-agency CMBS as of both March 31, 2024 and December 31, 2023.
(7) As of March 31, 2024 and December 31, 2023, the fair value of U.S. corporate bonds was $0.18 billion and $0.31 billion, respectively.
(8) An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the periods ended March 31, 2024 and December 31, 2023.
(9) As of both March 31, 2024 and December 31, 2023, we had no allowance for credit losses on AFS investment securities.
(10) As of March 31, 2024 and December 31, 2023, the total amortized cost included $5.21 billion and $5.23 billion of agency CMBS, respectively.
(11) Consists entirely of non-agency RMBS as of both March 31, 2024 and December 31, 2023.
(12) As of both March 31, 2024 and December 31, 2023, we had an allowance for credit losses on HTM investment securities of $1 million.
Aggregate investment securities with carrying values of approximately $81.51 billion and $71.30 billion as of March 31, 2024 and December 31, 2023, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.
The following tables present the aggregate fair values of AFS investment securities that have been in a continuous unrealized loss position for less than 12 months, and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated:
March 31, 2024
Less than 12 months12 months or longerTotal
(In millions)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$2,359 $8 $5,403 $136 $7,762 $144 
Mortgage-backed securities1,321 11 6,402 138 7,723 149 
Total U.S. Treasury and federal agencies3,680 19 11,805 274 15,485 293 
Non-U.S. debt securities:
Mortgage-backed securities310 — 584 4 894 4 
Asset-backed securities126 — 917 7 1,043 7 
Non-U.S. sovereign, supranational and non-U.S. agency5,579 16 5,415 103 10,994 119 
Other66 — 720 29 786 29 
Total non-U.S. debt securities6,081 16 7,636 143 13,717 159 
Asset-backed securities:
Collateralized loan obligations227 — 432 2 659 2 
Non-agency CMBS and RMBS— — 119 1 119 1 
Total asset-backed securities227 — 551 3 778 3 
State and political subdivisions210 2 130 1 340 3 
Other U.S. debt securities— — 183 5 183 5 
Total$10,198 $37 $20,305 $426 $30,503 $463 

December 31, 2023
Less than 12 months12 months or longerTotal
(In millions)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$333 $2 $5,416 $163 $5,749 $165 
Mortgage-backed securities961 6 6,512 158 7,473 164 
Total U.S. Treasury and federal agencies1,294 8 11,928 321 13,222 329 
Non-U.S. debt securities:
Mortgage-backed securities424 1 719 6 1,143 7 
Asset-backed securities358 — 1,052 13 1,410 13 
Non-U.S. sovereign, supranational and non-U.S. agency3,972 7 5,788 125 9,760 132 
Other50 — 893 37 943 37 
Total non-U.S. debt securities4,804 8 8,452 181 13,256 189 
Asset-backed securities:
Collateralized loan obligations183 — 1,605 6 1,788 6 
Non-agency CMBS and RMBS35 — 180 3 215 3 
Total asset-backed securities218 — 1,785 9 2,003 9 
State and political subdivisions64 — 104 1 168 1 
Other U.S. debt securities3 — 303 8 306 8 
Total$6,383 $16 $22,572 $520 $28,955 $536 
The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of March 31, 2024. The maturities of certain ABS, MBS and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties.
March 31, 2024
(In millions)Under 1 Year1 to 5 Years6 to 10 YearsOver 10 YearsTotal
Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$1,789 $1,788 $8,637 $8,527 $1,405 $1,414 $— $— $11,831 $11,729 
Mortgage-backed securities35 35 2,062 2,049 3,219 3,169 5,892 5,836 11,208 11,089 
Total U.S. Treasury and federal agencies1,824 1,823 10,699 10,576 4,624 4,583 5,892 5,836 23,039 22,818 
Non-U.S. debt securities:
Mortgage-backed securities175 175 284 284 52 52 1,450 1,449 1,961 1,960 
Asset-backed securities334 332 539 538 731 730 564 565 2,168 2,165 
Non-U.S. sovereign, supranational and non-U.S. agency3,859 3,837 10,157 10,094 1,394 1,390 — — 15,410 15,321 
Other332 329 2,199 2,198 159 164 — — 2,690 2,691 
Total non-U.S. debt securities4,700 4,673 13,179 13,114 2,336 2,336 2,014 2,014 22,229 22,137 
Asset-backed securities:
Student loans30 31 — — 14 14 63 63 107 108 
Collateralized loan obligations41 41 283 282 1,615 1,615 810 813 2,749 2,751 
Non-agency CMBS and RMBS— — — — — — 212 212 212 212 
Other— — 90 91 — — — — 90 91 
Total asset-backed securities71 72 373 373 1,629 1,629 1,085 1,088 3,158 3,162 
State and political subdivisions83 82 131 130 129 128 — — 343 340 
Other U.S. debt securities133 130 55 53 — — — — 188 183 
Total$6,811 $6,780 $24,437 $24,246 $8,718 $8,676 $8,991 $8,938 $48,957 $48,640 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$1,548 $1,525 $4,509 $4,370 $24 $23 $10 $10 $6,091 $5,928 
Mortgage-backed securities131 117 805 741 4,254 3,598 33,508 28,485 38,698 32,941 
Total U.S. Treasury and federal agencies1,679 1,642 5,314 5,111 4,278 3,621 33,518 28,495 44,789 38,869 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and non-U.S. agency1,837 1,809 2,817 2,716 410 388 — — 5,064 4,913 
Total non-U.S. debt securities1,837 1,809 2,817 2,716 410 388 — — 5,064 4,913 
Asset-backed securities:
Student loans196 192 336 335 426 424 2,097 2,066 3,055 3,017 
Non-agency CMBS and RMBS1 7 — — — — 5 17 6 24 
Total asset-backed securities197 199 336 335 426 424 2,102 2,083 3,061 3,041 
Total$3,713 $3,650 $8,467 $8,162 $5,114 $4,433 $35,620 $30,578 $52,914 $46,823 
Interest income related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any non-refundable fees or costs, as well as purchase premiums or discounts, adjusted as prepayments occur, resulting in amortization or accretion, accordingly.
Allowance for Credit Losses on Debt Securities and Impairment of AFS Securities
We conduct quarterly reviews of HTM and AFS securities on a collective (pool) basis when similar risk characteristics exist to determine whether an allowance for credit losses should be recognized. We review individual AFS securities periodically to assess if additional impairment is required. For additional information about the Current Expected Credit Loss methodology and the review of investment securities for expected credit losses or impairment, refer to page 145 to 146 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2023 Form 10-K.
We monitor the credit quality of the HTM and AFS investment securities using a variety of methods, including both external and internal credit ratings. As of March 31, 2024, over 99% of our HTM and AFS investment portfolio is publicly rated investment grade.
As of both March 31, 2024 and December 31, 2023, we had an allowance for credit losses on HTM investment securities of $1 million. In the first quarter of 2024, we recorded no provision for credit losses and no charge-offs on HTM securities.
As of both March 31, 2024 and December 31, 2023, we had no allowance for credit losses on AFS investment securities. In the first quarter of 2024, we recorded no provision for credit losses and no charge-offs on AFS securities.
We have elected to not record an allowance on accrued interest for HTM and AFS securities. Accrued interest on these securities is reversed against interest income when payment on a security is delinquent for greater than 90 days from the date of payment.
After a review of the investment portfolio, taking into consideration then-current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying MBS and ABS and other relevant factors, management considered the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $6.58 billion related to 1,731 securities as of March 31, 2024 to be primarily related to changes in interest rates, and not the result of any material changes in the credit characteristics of the securities.