Consolidations and Transfers of Financial Assets (Tables)

3 Months Ended

Mar. 31, 2026

Consolidations and Transfers of Financial Assets [Abstract]

Summary of Unconsolidated Variable Interest Entities

The following table displays our maximum exposure to loss as a result of our involvement with unconsolidated VIEs and the total assets of the VIEs.


	As of
	March 31, 2026				December 31, 2025
	Total Assets		Maximum Exposure to Loss		Total Assets		Maximum Exposure to Loss
	(Dollars in millions)
Securitization and resecuritization trusts(1)	$	533,881	$	193,906	$	535,491	$	199,010
Credit risk transfer SPVs(2)	22,879		22,892		22,835		22,847
Limited partnerships, including low income housing tax credit ("LIHTC") investments(3)	6,960		744		6,973		750

(1)The net carrying amount of securitization and resecuritization trusts were $18.2 billion and $14.1 billion as of March 31, 2026 and December 31, 2025, respectively, which are primarily classified in Investments in securities, at fair value in our condensed consolidated balance sheets.

(2)Maximum exposure to loss of credit risk transfer SPVs consists of the UPB and accrued interest payable of obligations issued by Connecticut Avenue Securities® ("CAS") and Multifamily Connecticut Avenue Securities® ("MCASTM") SPVs.

(3)The net carrying value of LIHTC investments that represent VIEs was $744 million and $750 million as of March 31, 2026 and December 31, 2025, respectively. The net carrying value of all LIHTC investments was $2.5 billion as of March 31, 2026 and December 31, 2025. In our condensed consolidated balance sheets, the LIHTC investment assets and liabilities are classified as “Other assets” and “Other liabilities,” respectively.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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