Ally Bank 2011 Annual Report Download - page 149

Table of Contents
Notes to Consolidated Financial Statements
Ally Financial Inc. • Form 10−K
7. Investment Securities
Our portfolio of investment securities includes bonds, equity securities, asset− and MBS, interests in securitization trusts, and other investments. The
cost, fair value, and gross unrealized gains and losses on available−for−sale securities were as follows.
2011 2010
Amortized
cost Gross unrealized Fair value Amortized cost Gross unrealized Fair valueDecember 31, ($ in millions) gains losses gains losses
Available−for−sale securities
Debt securities
U.S. Treasury and federal agencies $ 1,535 $ 13 $ (2) $ 1,546 $ 3,307 $ 22 $ (11) $ 3,318
States and political subdivisions 1 — — 1 3 — (1) 2
Foreign government 765 20 (1) 784 1,231 19 (2) 1,248
Mortgage−backed residential (a) 7,266 87 (41) 7,312 5,844 60 (79) 5,825
Asset−backed 2,600 28 (13) 2,615 1,934 15 (1) 1,948
Corporate debt 1,486 23 (18) 1,491 1,537 34 (13) 1,558
Other 326 1 — 327 152 — (1) 151
Total debt securities (b) 13,979 172 (75) 14,076 14,008 150 (108) 14,050
Equity securities 1,188 25 (154) 1,059 766 60 (30) 796
Total available−for−sale securities (c) $ 15,167 $ 197 $ (229) $ 15,135 $ 14,774 $ 210 $ (138) $ 14,846
(a) Residential MBS include agency−backed bonds totaling $6,114 million and $4,503 million at December 31, 2011 and 2010, respectively.
(b) In connection with certain borrowings and letters of credit relating to certain assumed reinsurance contracts, $153 million of primarily U.K. Treasury securities were pledged as
collateral at December 31, 2010. No equivalent securities were pledged at December 31, 2011.
(c) Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $16 million and $12 million
at December 31, 2011 and 2010, respectively.
The maturity distribution of available−for−sale debt securities outstanding is summarized in the following tables. Prepayments may cause actual
maturities to differ from scheduled maturities.
December 31, 2011 Total
Due in
one year
or less
Due after one
year through
five years
Due after five
years through
ten years Due after ten years (a)
($ in millions) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield
Fair value of
available−for−sale
debt securities (b)
U.S. Treasury and
federal agencies $ 1,546 0.9% $ 231 —% $ 1,202 0.9% $ 113 2.2% $ — —%
States and political
subdivisions 1 5.4 — — — — — — 1 5.4
Foreign government 784 4.4 77 7.7 506 4.3 201 3.3 — —
Mortgage−backed
residential 7,312 2.5 3 4.8 2 6.3 189 2.6 7,118 2.5
Asset−backed 2,615 2.1 — — 1,599 1.9 574 1.9 442 3.2
Corporate debt 1,491 4.9 19 4.9 741 4.4 606 5.6 125 4.7
Other 327 1.4 316 1.3 — — 11 4.6 — —
Total
available−for−sale
debt securities $ 14,076 2.6 $ 646 1.7 $ 4,050 2.4 $ 1,694 3.5 $ 7,686 2.6
Amortized cost of
available−for−sale
debt securities $ 13,979 $ 644 $ 4,026 $ 1,678 $ 7,631
(a) Investments with no stated maturities are included as contractual maturities of greater than 10 years. Actual maturities may differ due to call or prepayment options.
(b) Yields on tax−exempt obligations have been computed on a tax−equivalent basis.
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