v3.25.2
Investment Securities
 6 Months Ended
Jun. 30, 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. For additional
information on our accounting for investment securities, refer to page 136 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 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) 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:
 As of June 30, 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$26,828 $30 $47 $26,811 $23,539 $38 $52 $23,525 
Mortgage-backed securities(1)
14,963 38 134 14,867 10,699 21 154 10,566 
Total U.S. Treasury and federal agencies41,791 68 181 41,678 34,238 59 206 34,091 
Non-U.S. debt securities:
Mortgage-backed securities3,004 6 1 3,009 2,426 5 1 2,430 
Asset-backed securities(2)
2,458 6 2 2,462 1,865 5 2 1,868 
Non-U.S. sovereign, supranational and non-U.S. agency16,413 111 16 16,508 13,954 54 69 13,939 
Other(3)
3,220 52 1 3,271 2,787 38 4 2,821 
Total non-U.S. debt securities25,095 175 20 25,250 21,032 102 76 21,058 
Asset-backed securities:
Student loans(4)
84 — — 84 89 1 — 90 
Collateralized loan obligations(5)
3,435 5 — 3,440 3,447 6 — 3,453 
Non-agency CMBS and RMBS(6)
— 4 — 4 1 3 — 4 
Other90 1 — 91 90 1 — 91 
Total asset-backed securities3,609 10 — 3,619 3,627 11 — 3,638 
State and political subdivisions30 — — 30 56 — — 56 
Other U.S. debt securities(7)
27 — 1 26 53 — 1 52 
Total available-for-sale securities(8)
$70,552 $253 $202 $70,603 $59,006 $172 $283 $58,895 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$3,059 $— $19 $3,040 $5,417 $— $55 $5,362 
Mortgage-backed securities(9)
34,530 10 4,726 29,814 36,101 2 5,677 30,426 
Total U.S. Treasury and federal agencies37,589 10 4,745 32,854 41,518 2 5,732 35,788 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and non-U.S. agency3,299 10 46 3,263 3,673 7 73 3,607 
Total non-U.S. debt securities3,299 10 46 3,263 3,673 7 73 3,607 
Asset-backed securities:
Student loans(4)
2,398 4 34 2,368 2,536 4 29 2,511 
Total asset-backed securities2,398 4 34 2,368 2,536 4 29 2,511 
Total held-to-maturity securities(8)
$43,286 $24 $4,825 $38,485 $47,727 $13 $5,834 $41,906 
(1) As of June 30, 2025 and December 31, 2024, the total fair value included $4.14 billion and $4.36 billion, respectively, of agency CMBS and $6.06 billion and $6.20 billion, respectively, of agency MBS.
(2) As of June 30, 2025 and December 31, 2024, the fair value includes non-U.S. collateralized loan obligations of $0.85 billion and $0.70 billion, respectively.
(3) As of June 30, 2025 and December 31, 2024, the fair value includes non-U.S. corporate bonds of $2.61 billion and $2.54 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 both June 30, 2025 and December 31, 2024.
(7) As of June 30, 2025 and December 31, 2024, the fair value of U.S. corporate bonds was $0.03 billion and $0.05 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 June 30, 2025 and December 31, 2024.
(9) As of June 30, 2025 and December 31, 2024, the total amortized cost included $5.14 billion and $5.18 billion of agency CMBS, respectively.
Aggregate investment securities with carrying values of approximately $82.04 billion and $86.70 billion as of June 30, 2025 and December 31, 2024, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.
In the three and six months ended June 30, 2025, proceeds from sales of AFS securities were approximately $5.47 billion and $7.52 billion, respectively, primarily from sales of agency MBS, U.S. Treasury, and supranational securities. We recognized a pre-tax gain of nil from these sales in both the three and six months ended June 30, 2025.
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:
June 30, 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$10,955 $7 $10,248 $40 $21,203 $47 
Mortgage-backed securities4,229 51 4,209 83 8,438 134 
Total U.S. Treasury and federal agencies15,184 58 14,457 123 29,641 181 
Non-U.S. debt securities:
Mortgage-backed securities476 1 111 — 587 1 
Asset-backed securities381 1 340 1 721 2 
Non-U.S. sovereign, supranational and non-U.S. agency2,694 2 2,416 14 5,110 16 
Other256 — 130 1 386 1 
Total non-U.S. debt securities3,807 4 2,997 16 6,804 20 
Asset-backed securities:
Student loans11 — — — 11 — 
Collateralized loan obligations642 — — — 642 — 
Total asset-backed securities653 — — — 653 — 
State and political subdivisions4 — — — 4 — 
Other U.S. debt securities3 — 23 1 26 1 
Total$19,651 $62 $17,477 $140 $37,128 $202 

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 
The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of June 30, 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.
June 30, 2025
(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$8,190 $8,185 $18,554 $18,542 $84 $84 $— $— $26,828 $26,811 
Mortgage-backed securities158 158 1,765 1,762 2,233 2,212 10,807 10,735 14,963 14,867 
Total U.S. Treasury and federal agencies8,348 8,343 20,319 20,304 2,317 2,296 10,807 10,735 41,791 41,678 
Non-U.S. debt securities:
Mortgage-backed securities179 179 527 528 — — 2,298 2,302 3,004 3,009 
Asset-backed securities173 173 441 441 1,239 1,242 605 606 2,458 2,462 
Non-U.S. sovereign, supranational and non-U.S. agency3,706 3,708 11,441 11,537 1,266 1,263 — — 16,413 16,508 
Other611 612 2,509 2,557 100 102 — — 3,220 3,271 
Total non-U.S. debt securities4,669 4,672 14,918 15,063 2,605 2,607 2,903 2,908 25,095 25,250 
Asset-backed securities:
Student loans23 23 — — 10 10 51 51 84 84 
Collateralized loan obligations162 163 91 91 1,710 1,712 1,472 1,474 3,435 3,440 
Non-agency CMBS and RMBS— — — — — — — 4 — 4 
Other— — 90 91 — — — — 90 91 
Total asset-backed securities185 186 181 182 1,720 1,722 1,523 1,529 3,609 3,619 
State and political subdivisions4 4 26 26 — — — — 30 30 
Other U.S. debt securities3 3 24 23 — — — — 27 26 
Total$13,209 $13,208 $35,468 $35,598 $6,642 $6,625 $15,233 $15,172 $70,552 $70,603 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$2,787 $2,773 $264 $259 $1 $1 $7 $7 $3,059 $3,040 
Mortgage-backed securities149 138 3,223 2,927 1,707 1,496 29,451 25,253 34,530 29,814 
Total U.S. Treasury and federal agencies2,936 2,911 3,487 3,186 1,708 1,497 29,458 25,260 37,589 32,854 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and non-U.S. agency1,702 1,683 1,503 1,488 94 92 — — 3,299 3,263 
Total non-U.S. debt securities1,702 1,683 1,503 1,488 94 92 — — 3,299 3,263 
Asset-backed securities:
Student loans138 135 402 401 475 473 1,383 1,359 2,398 2,368 
Total asset-backed securities138 135 402 401 475 473 1,383 1,359 2,398 2,368 
Total$4,776 $4,729 $5,392 $5,075 $2,277 $2,062 $30,841 $26,619 $43,286 $38,485 
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 pages 140 to 141 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 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 June 30, 2025, over 99% of our HTM and AFS investment portfolio is publicly rated investment grade.
As of both June 30, 2025 and December 31, 2024, we had no allowance for credit losses on HTM and AFS investment securities. In the second quarter of 2025, we recorded no provision for credit losses and no charge-offs on HTM and AFS investment 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 $5.03 billion related to 1,447 securities as of June 30, 2025 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 June 30, 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.