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Investment Securities
 12 Months Ended
Dec. 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.
Generally, trading assets are debt and equity securities purchased in connection with our trading activities and, as such, are expected to be sold in the near term. Our trading activities typically involve active and frequent buying and selling with the objective of generating profits on short-term movements. AFS investment securities are those securities that we intend to hold for an indefinite period of time. AFS investment securities include securities utilized as part of our asset and liability management activities that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. HTM securities are debt securities that management has the intent and the ability to hold to maturity.
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) from sales of available-for-sale 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:
 December 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$23,539 $38 $52 $23,525 $8,427 $39 $165 $8,301 
Mortgage-backed securities(1)
10,699 21 154 10,566 10,870 49 164 10,755 
Total U.S. Treasury and federal agencies34,238 59 206 34,091 19,297 88 329 19,056 
Non-U.S. debt securities:
Mortgage-backed securities2,426 5 1 2,430 1,861 3 7 1,857 
Asset-backed securities(2)
1,865 5 2 1,868 2,148 2 13 2,137 
Non-U.S. sovereign, supranational and non-U.S. agency13,954 54 69 13,939 15,159 73 132 15,100 
Other(3)
2,787 38 4 2,821 2,733 39 37 2,735 
Total non-U.S. debt securities21,032 102 76 21,058 21,901 117 189 21,829 
Asset-backed securities:
Student loans(4)
89 1 — 90 113 1 — 114 
Collateralized loan obligations(5)
3,447 6 — 3,453 90 — — 90 
Non-agency CMBS and RMBS(6)
1 3 — 4 252 — 3 249 
Other90 1 — 91 2,530 3 6 2,527 
Total asset-backed securities3,627 11 — 3,638 2,985 4 9 2,980 
State and political subdivisions56 — — 56 356 — 1 355 
Other U.S. debt securities(7)
53 — 1 52 314 — 8 306 
Total available-for-sale securities(8)(9)
$59,006 $172 $283 $58,895 $44,853 $209 $536 $44,526 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$5,417 $— $55 $5,362 $8,584 $— $163 $8,421 
Mortgage-backed securities(10)
36,101 2 5,677 30,426 39,472 7 5,271 34,208 
Total U.S. Treasury and federal agencies41,518 2 5,732 35,788 48,056 7 5,434 42,629 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and non-U.S. agency3,673 7 73 3,607 5,757 8 153 5,612 
Total non-U.S. debt securities3,673 7 73 3,607 5,757 8 153 5,612 
Asset-backed securities:
Student loans(4)
2,536 4 29 2,511 3,298 2 62 3,238 
Non-agency CMBS and RMBS(11)
— — — — 6 18 — 24 
Total asset-backed securities2,536 4 29 2,511 3,304 20 62 3,262 
Total held-to-maturity securities(8)(12)
$47,727 $13 $5,834 $41,906 $57,117 $35 $5,649 $51,503 
(1) As of December 31, 2024 and 2023, the total fair value included $4.36 billion and $5.54 billion, respectively, of agency CMBS and $6.20 billion and $5.21 billion, respectively, of agency MBS.
(2) As of December 31, 2024 and 2023, the fair value includes non-U.S. collateralized loan obligations of $0.70 billion and $1.02 billion, respectively.
(3) As of December 31, 2024 and 2023, the fair value includes non-U.S. corporate bonds of $2.54 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 RMBS as of December 31, 2024 and entirely of non-agency CMBS as of December 31, 2023.
(7) As of December 31, 2024 and 2023, the fair value of U.S. corporate bonds was $0.05 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 period ended December 31, 2024.
(9) As of December 31, 2024 and 2023, we had no allowance for credit losses on AFS investment securities.
(10) As of December 31, 2024 and 2023, the total amortized cost included $5.18 billion and $5.23 billion of agency CMBS, respectively.
(11) Consists entirely of non-agency RMBS as of December 31, 2023.
(12) As of December 31, 2024, we had no allowance for credit losses on HTM investment securities. As of December 31, 2023, we had $1 million allowance for credit losses on HTM investment securities.
Aggregate investment securities with carrying values of approximately $86.70 billion and $71.30 billion as of December 31, 2024 and 2023, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.
In 2024, 2023 and 2022, proceeds from sales of AFS securities were approximately $10.97 billion, $4.92 billion and $4.59 billion, respectively, resulting in a pre-tax loss of approximately $79 million, $294 million and $2 million in 2024, 2023 and 2022, respectively. The pre-tax loss in 2024 was primarily driven by sales of U.S. Treasury, non-U.S. agency, supranational and mortgage-backed securities as part of an investment portfolio repositioning in the third quarter of 2024.
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:
As of December 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$8,113 $25 $2,435 $27 $10,548 $52 
Mortgage-backed securities3,742 59 4,360 95 8,102 154 
Total U.S. Treasury and federal agencies11,855 84 6,795 122 18,650 206 
Non-U.S. debt securities:
Mortgage-backed securities730 1 225 — 955 1 
Asset-backed securities387 — 506 2 893 2 
Non-U.S. sovereign, supranational and non-U.S. agency4,695 49 2,695 20 7,390 69 
Other312 2 116 2 428 4 
Total non-U.S. debt securities6,124 52 3,542 24 9,666 76 
Asset-backed securities:
Student loans12 — — — 12 — 
Collateralized loan obligations684 — — — 684 — 
Total asset-backed securities696 — — — 696 — 
State and political subdivisions— — 26 — 26 — 
Other U.S. debt securities3 — 49 1 52 1 
Total$18,678 $136 $10,412 $147 $29,090 $283 

As of 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 December 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.
As of December 31, 2024
(In millions)Under 1 Year1 to 5 Years6 to 10 YearsOver 10 YearsTotal
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Amortized Cost
Fair Value
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$8,619 $8,625 $13,485 $13,474 $1,435 $1,426 $— $— $23,539 $23,525 
Mortgage-backed securities49 49 1,824 1,819 2,517 2,493 6,309 6,205 10,699 10,566 
Total U.S. Treasury and federal agencies8,668 8,674 15,309 15,293 3,952 3,919 6,309 6,205 34,238 34,091 
Non-U.S. debt securities:
Mortgage-backed securities58 58 427 427 38 38 1,903 1,907 2,426 2,430 
Asset-backed securities276 276 279 279 1,005 1,007 305 306 1,865 1,868 
Non-U.S. sovereign, supranational and
non-U.S. agency		2,706 2,700 10,138 10,136 1,110 1,103 — — 13,954 13,939 
Other371 371 2,314 2,346 102 104 — — 2,787 2,821 
Total non-U.S. debt securities3,411 3,405 13,158 13,188 2,255 2,252 2,208 2,213 21,032 21,058 
Asset-backed securities:
Student loans23 24 — — 12 12 54 54 89 90 
Collateralized loan obligations37 37 78 78 1,874 1,877 1,458 1,461 3,447 3,453 
Non-agency CMBS and RMBS— — — — — — 1 4 1 4 
Other— — 90 91 — — — — 90 91 
Total asset-backed securities60 61 168 169 1,886 1,889 1,513 1,519 3,627 3,638 
State and political subdivisions30 30 26 26 — — — — 56 56 
Other U.S. debt securities30 29 23 23 — — — — 53 52 
Total$12,199 $12,199 $28,684 $28,699 $8,093 $8,060 $10,030 $9,937 $59,006 $58,895 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$4,557 $4,521 $851 $832 $1 $1 $8 $8 $5,417 $5,362 
Mortgage-backed securities134 120 1,711 1,559 3,308 2,788 30,948 25,959 36,101 30,426 
Total U.S. Treasury and federal agencies4,691 4,641 2,562 2,391 3,309 2,789 30,956 25,967 41,518 35,788 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and
non-U.S. agency		1,409 1,397 2,044 1,998 220 212 — — 3,673 3,607 
Total non-U.S. debt securities1,409 1,397 2,044 1,998 220 212 — — 3,673 3,607 
Asset-backed securities:
Student loans149 147 310 309 380 379 1,697 1,676 2,536 2,511 
Total asset-backed securities149 147 310 309 380 379 1,697 1,676 2,536 2,511 
Total$6,249 $6,185 $4,916 $4,698 $3,909 $3,380 $32,653 $27,643 $47,727 $41,906 
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
An allowance for credit losses is recognized on HTM securities upon acquisition of the security, and on AFS securities when the fair value and expected future cash flows of the investment securities are less than their amortized cost basis. Our assessment of impairment involves an evaluation of economic and security-specific factors. Such factors are based on estimates, derived by management, which contemplate current market conditions and security-specific performance. To the extent that market conditions are worse than management’s expectations or due to idiosyncratic bond performance, the credit-related component of impairment, in particular, could increase and would be recorded in the provision for credit losses.
We conduct quarterly reviews of HTM securities on a collective (pool) basis when similar risk characteristics exist to determine whether an allowance for credit losses should be recognized. HTM securities are evaluated for expected credit loss utilizing a probability of default methodology, or discounted cash flows assessed against the amortized cost of the investment security excluding accrued interest.
We monitor the credit quality of the HTM investment securities using a variety of methods, including both external and internal credit ratings.
With respect to certain classes of debt securities, primarily U.S. Treasuries and agency securities (mainly issued by U.S. Government entities and agencies, as well as Group of Seven sovereigns), we consider the history of credit losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero. Therefore, for those securities, we do not record expected credit losses.
As of December 31, 2024, we had no allowance for credit losses on HTM investment securities. As of December 31, 2023, we had $1 million allowance for credit losses on HTM investment securities.
We have elected to not record an allowance on accrued interest for HTM 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.
An AFS security is impaired when the current fair value of an individual security is below its amortized cost basis. An allowance for credit losses on impaired AFS securities is recorded when the present value of expected future cash flows of the investment security is less than its amortized cost basis, limited to the amount by which the security’s amortized cost basis exceeds the fair value.
Investment securities will be written down to fair value through the consolidated statement of income when management intends to sell (or may be required to sell) the securities before they recover in value.
Our review of AFS investment securities for credit impairment generally includes:
•the identification and evaluation of securities that have indications of potential impairment, such as issuer-specific concerns, including deteriorating financial condition or bankruptcy;
•the analysis of expected future cash flows of securities, based on quantitative and qualitative factors;
•the analysis of the collectability of those future cash flows, including information about past events, current conditions, and reasonable and supportable forecasts;
•the analysis of the underlying collateral for MBS and ABS;
•the analysis of individual impaired securities, including the anticipated recovery period and the magnitude of the overall price decline;
•evaluation of factors or triggers that could cause individual securities to be deemed impaired and those that would not support impairment; and
•documentation of the results of these analyses.
As of both December 31, 2024 and 2023, we had no allowance for credit losses on AFS investment securities.
Substantially all of our investment securities portfolio is composed of debt securities. A critical component of our assessment of impairment of these debt securities is the identification of credit-impaired securities for which management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security.
As of December 31, 2024, 99% of our HTM and AFS investment portfolio is publicly rated investment grade.
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 $6.12 billion and $6.19 billion related to 1,564 and 1,704 securities as of December 31, 2024 and 2023, respectively, to be primarily related to changes in interest rates, and not the result of any material changes in the credit characteristics of the
securities. The unrealized loss has not been recognized as of December 31, 2024, as management did not have the intent to sell, nor was it more likely than not that we would be required to sell these securities before the expected recovery of their amortized cost basis.