Goldman Sachs 2015 Annual Report Download - page 120

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Management’s Discussion and Analysis
Credit Exposure by Industry, Region and Credit
Quality
The tables below present our credit exposure related to
cash, OTC derivatives, and loans and lending commitments
(excluding credit exposures described above in “Securities
Financing Transactions” and “Other Credit Exposures”)
broken down by industry, region and credit quality.
Cash
as of December
$ in millions 2015 2014
Credit Exposure by Industry
Funds $176 $96
Financial Institutions 12,799 12,469
Sovereign 62,130 45,029
Real Estate —6
Total $75,105 $57,600
Credit Exposure by Region
Americas $54,846 $45,599
EMEA 8,496 1,666
Asia 11,763 10,335
Total $75,105 $57,600
Credit Exposure by Credit Quality (Credit Rating Equivalent)
AAA/Aaa $55,626 $38,778
AA/Aa2 4,286 4,598
A/A2 14,243 13,346
BBB/Baa2 855 730
BB/Ba2 or lower 95 148
Total $75,105 $57,600
OTC Derivatives
as of December
$ in millions 2015 2014
Credit Exposure by Industry
Funds $10,899 $13,114
Financial Institutions 13,148 15,051
Consumer, Retail & Healthcare 1,553 3,325
Sovereign 7,566 10,004
Municipalities & Nonprofit 3,984 4,303
Natural Resources & Utilities 4,846 5,741
Real Estate 205 407
Technology, Media & Telecommunications 1,839 2,995
Diversified Industrials 5,008 4,321
Other 1,378 1,476
Total $50,426 $60,737
Credit Exposure by Region
Americas $17,724 $22,032
EMEA 27,113 31,295
Asia 5,589 7,410
Total $50,426 $60,737
Credit Exposure by Credit Quality (Credit Rating Equivalent)
AAA/Aaa $ 2,628 $ 3,354
AA/Aa2 16,440 18,372
A/A2 10,706 15,170
BBB/Baa2 11,732 13,573
BB/Ba2 or lower 8,124 9,783
Unrated 796 485
Total $50,426 $60,737
Loans and Lending
Commitments
as of December
$ in millions 2015 2014
Credit Exposure by Industry
Funds $ 2,595 $ 1,706
Financial Institutions 14,063 11,316
Consumer, Retail & Healthcare 31,944 30,216
Sovereign 419 450
Municipalities & Nonprofit 628 541
Natural Resources & Utilities 24,476 24,275
Real Estate 15,045 12,366
Technology, Media & Telecommunications 36,444 20,633
Diversified Industrials 20,047 16,392
Other 13,941 11,998
Total $159,602 $129,893
Credit Exposure by Region
Americas $121,271 $ 91,378
EMEA 33,061 34,397
Asia 5,270 4,118
Total $159,602 $129,893
Credit Exposure by Credit Quality (Credit Rating Equivalent)
AAA/Aaa $ 4,148 $ 3,969
AA/Aa2 7,716 8,097
A/A2 27,212 22,623
BBB/Baa2 43,937 35,706
BB/Ba2 or lower 76,049 58,670
Unrated 540 828
Total $159,602 $129,893
Selected Exposures
The section below provides information about our credit
and market exposure to certain jurisdictions and industries
that have had heightened focus due to recent events and
broad market concerns. Credit exposure represents the
potential for loss due to the default or deterioration in
credit quality of a counterparty or borrower. Market
exposure represents the potential for loss in value of our
long and short inventory due to changes in market prices.
There is no overlap between the credit and market
exposures in the amounts below.
Country Exposures. The decline in oil prices continues to
raise concerns about Venezuela and Nigeria, and their
sovereign debt. The political situations in Iraq and Russia,
as well as the decline in oil prices, have led to continued
concerns about their economic and financial stability. In
addition, Argentina’s default on its sovereign debt coupled
with its contracting economy has raised concerns about its
long term financial stability. Separately, signs of slowing
growth in China and deteriorating macroeconomic
conditions in Brazil have led to heightened focus and broad
market concerns relating to these countries.
108 Goldman Sachs 2015 Form 10-K