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Investment Securities
 12 Months Ended
Dec. 31, 2025
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, 2025December 31, 2024
 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$23,210 $55 $5 $23,260 $23,539 $38 $52 $23,525 
Mortgage-backed securities(1)
15,550 90 54 15,586 10,699 21 154 10,566 
Total U.S. Treasury and federal agencies38,760 145 59 38,846 34,238 59 206 34,091 
Non-U.S. debt securities:
Mortgage-backed securities2,573 6 1 2,578 2,426 5 1 2,430 
Asset-backed securities(2)
2,081 5 1 2,085 1,865 5 2 1,868 
Non-U.S. sovereign, supranational and non-U.S. agency17,693 73 35 17,731 13,954 54 69 13,939 
Other(3)
2,784 42 — 2,826 2,787 38 4 2,821 
Total non-U.S. debt securities25,131 126 37 25,220 21,032 102 76 21,058 
Asset-backed securities:
Student loans(4)
63 1 — 64 89 1 — 90 
Collateralized loan obligations(5)
2,904 2 1 2,905 3,447 6 — 3,453 
Non-agency CMBS and RMBS(6)
— 3 — 3 1 3 — 4 
Other90 1 — 91 90 1 — 91 
Total asset-backed securities3,057 7 1 3,063 3,627 11 — 3,638 
State and political subdivisions25 — — 25 56 — — 56 
Other U.S. debt securities
— — — — 53 — 1 52 
Total available-for-sale securities(7)(8)
$66,973 $278 $97 $67,154 $59,006 $172 $283 $58,895 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$573 $— $3 $570 $5,417 $— $55 $5,362 
Mortgage-backed securities(9)
32,876 9 3,965 28,920 36,101 2 5,677 30,426 
Total U.S. Treasury and federal agencies33,449 9 3,968 29,490 41,518 2 5,732 35,788 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and non-U.S. agency2,461 4 31 2,434 3,673 7 73 3,607 
Total non-U.S. debt securities2,461 4 31 2,434 3,673 7 73 3,607 
Asset-backed securities:
Student loans(4)
2,261 5 24 2,242 2,536 4 29 2,511 
Total asset-backed securities2,261 5 24 2,242 2,536 4 29 2,511 
Total held-to-maturity securities(7)(10)
$38,171 $18 $4,023 $34,166 $47,727 $13 $5,834 $41,906 
(1) As of December 31, 2025 and 2024, the total fair value included $2.81 billion and $4.36 billion, respectively, of agency CMBS and $12.78 billion and $6.20 billion, respectively, of agency MBS.
(2) As of December 31, 2025 and 2024, the fair value includes non-U.S. collateralized loan obligations of $0.77 billion and $0.70 billion, respectively.
(3) As of December 31, 2025 and 2024, the fair value includes non-U.S. corporate bonds of $2.40 billion and $2.54 billion, respectively.
(4) Primarily comprises securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans.
(5) Excludes CLO loans. Refer to Note 4 for additional information.
(6) Consists entirely of non-agency RMBS as of both December 31, 2025 and 2024.
(7) An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the periods ended December 31, 2025 and 2024.
(8) As of December 31, 2025 and 2024, we had no allowance for credit losses on AFS investment securities.
(9) As of December 31, 2025 and 2024, the total amortized cost included $5.08 billion and $5.18 billion of agency CMBS, respectively.
(10) As of both December 31, 2025 and 2024, the allowance for credit losses on HTM investment securities was less than $1 million.
Aggregate investment securities with carrying values of approximately $74.14 billion and $86.70 billion as of December 31, 2025 and 2024, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.
In 2025, 2024 and 2023, proceeds from sales of AFS securities were approximately $16.00 billion, $10.97 billion and $4.92 billion, respectively, resulting in a pre-tax gain of approximately $4 million in 2025, and a pre-tax loss of approximately $79 million and $294 million in 2024 and 2023, respectively. The pre-tax gain in 2025 was primarily driven by sales of U.S. Treasury, mortgage-backed securities, supranational securities and foreign government bonds.
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, 2025
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$756 $2 $2,063 $3 $2,819 $5 
Mortgage-backed securities1,267 3 4,018 51 5,285 54 
Total U.S. Treasury and federal agencies2,023 5 6,081 54 8,104 59 
Non-U.S. debt securities:
Mortgage-backed securities617 1 73 — 690 1 
Asset-backed securities425 — 168 1 593 1 
Non-U.S. sovereign, supranational and non-U.S. agency3,871 28 1,943 7 5,814 35 
Other129 — — — 129 — 
Total non-U.S. debt securities5,042 29 2,184 8 7,226 37 
Asset-backed securities:
Collateralized loan obligations1,068 1 — — 1,068 1 
Total asset-backed securities1,068 1 — — 1,068 1 
Total$8,133 $35 $8,265 $62 $16,398 $97 

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 — 
Non-agency CMBS and RMBS— — — — — — 
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 
The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of December 31, 2025. 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, 2025
(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$6,153 $6,161 $17,056 $17,098 $1 $1 $— $— $23,210 $23,260 
Mortgage-backed securities81 80 1,639 1,638 1,092 1,083 12,738 12,785 15,550 15,586 
Total U.S. Treasury and federal agencies6,234 6,241 18,695 18,736 1,093 1,084 12,738 12,785 38,760 38,846 
Non-U.S. debt securities:
Mortgage-backed securities179 180 485 485 — — 1,909 1,913 2,573 2,578 
Asset-backed securities56 56 329 330 929 932 767 767 2,081 2,085 
Non-U.S. sovereign, supranational and
non-U.S. agency		4,423 4,432 12,457 12,486 813 813 — — 17,693 17,731 
Other796 800 1,958 1,996 30 30 — — 2,784 2,826 
Total non-U.S. debt securities5,454 5,468 15,229 15,297 1,772 1,775 2,676 2,680 25,131 25,220 
Asset-backed securities:
Student loans6 6 — — 9 10 48 48 63 64 
Collateralized loan obligations156 156 16 16 1,341 1,341 1,391 1,392 2,904 2,905 
Non-agency CMBS and RMBS— — — — — 3 — — — 3 
Other— — 90 91 — — — — 90 91 
Total asset-backed securities162 162 106 107 1,350 1,354 1,439 1,440 3,057 3,063 
State and political subdivisions25 25 — — — — — — 25 25 
Total$11,875 $11,896 $34,030 $34,140 $4,215 $4,213 $16,853 $16,905 $66,973 $67,154 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$463 $461 $103 $102 $— $— $7 $7 $573 $570 
Mortgage-backed securities234 220 3,924 3,578 868 790 27,850 24,332 32,876 28,920 
Total U.S. Treasury and federal agencies697 681 4,027 3,680 868 790 27,857 24,339 33,449 29,490 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and
non-U.S. agency		1,108 1,102 1,259 1,240 94 92 — — 2,461 2,434 
Total non-U.S. debt securities1,108 1,102 1,259 1,240 94 92 — — 2,461 2,434 
Asset-backed securities:
Student loans127 125 424 423 413 414 1,297 1,280 2,261 2,242 
Total asset-backed securities127 125 424 423 413 414 1,297 1,280 2,261 2,242 
Total$1,932 $1,908 $5,710 $5,343 $1,375 $1,296 $29,154 $25,619 $38,171 $34,166 
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.
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.
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, 2025, 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 $4.12 billion and $6.12 billion related to 1,342 and 1,564 securities as of December 31, 2025 and 2024, 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, 2025, 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.