Goldman Sachs 2015 Annual Report Download - page 140

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The tables below present the firm’s financial instruments
owned, at fair value, and financial instruments sold, but not
yet purchased, at fair value.
As of December 2015
$ in millions
Financial
Instruments
Owned
Financial
Instruments
Sold, But
Not Yet
Purchased
Commercial paper, certificates of deposit,
time deposits and other money market
instruments $ 2,583 $ —
U.S. government and federal agency
obligations 46,382 15,516
Non-U.S. government and agency obligations 31,772 14,973
Loans and securities backed by commercial
real estate 4,975 14
Loans and securities backed by residential
real estate 13,183 22
Bank loans and bridge loans 12,164 461
Corporate debt securities 16,640 6,123
State and municipal obligations 992 2
Other debt obligations 1,595 32
Equities and convertible debentures 98,072 31,394
Commodities 3,935 —
Investments in funds measured at NAV 7,757 —
Subtotal 240,050 68,477
Derivatives 53,890 46,771
Total $293,940 $115,248
As of December 2014
$ in millions
Financial
Instruments
Owned
Financial
Instruments
Sold, But
Not Yet
Purchased
Commercial paper, certificates of deposit,
time deposits and other money market
instruments $ 3,654 $ —
U.S. government and federal agency
obligations 48,002 12,762
Non-U.S. government and agency obligations 37,059 20,500
Loans and securities backed by commercial
real estate 7,140 11
Loans and securities backed by residential
real estate 11,717 2—
Bank loans and bridge loans 14,171 464
Corporate debt securities 21,419 5,800
State and municipal obligations 1,203 —
Other debt obligations 3,257 32
Equities and convertible debentures 87,900 28,314
Commodities 3,846 1,224
Investments in funds measured at NAV 9,610 —
Subtotal 248,978 69,067
Derivatives 63,270 63,016
Total $312,248 $132,083
1. Includes $3.11 billion and $4.97 billion of loans backed by commercial real
estate as of December 2015 and December 2014, respectively.
2. Includes $10.22 billion and $6.43 billion of loans backed by residential real
estate as of December 2015 and December 2014, respectively.
3. Includes $272 million and $618 million of loans backed by consumer loans
and other assets as of December 2015 and December 2014, respectively.
Gains and Losses from Market Making and Other
Principal Transactions
The table below presents “Market making” revenues by
major product type, as well as “Other principal
transactions” revenues. These gains/(losses) include both
realized and unrealized gains and losses, and are primarily
related to the firm’s financial instruments owned, at fair
value and financial instruments sold, but not yet purchased,
at fair value, including both derivative and non-derivative
financial instruments. These gains/(losses) exclude related
interest income and interest expense. See Note 23 for
further information about interest income and interest
expense.
The gains/(losses) in the table below are not representative
of the manner in which the firm manages its business
activities because many of the firm’s market-making and
client facilitation strategies utilize financial instruments
across various product types. Accordingly, gains or losses in
one product type frequently offset gains or losses in other
product types. For example, most of the firm’s longer-term
derivatives across product types are sensitive to changes in
interest rates and may be economically hedged with interest
rate swaps. Similarly, a significant portion of the firm’s cash
instruments and derivatives across product types has
exposure to foreign currencies and may be economically
hedged with foreign currency contracts.
$ in millions
Product Type
Year Ended December
2015 2014 2013
Interest rates $ (1,360) $ (5,316) $ 930
Credit 920 2,982 1,845
Currencies 3,345 6,566 2,446
Equities 5,515 2,683 2,655
Commodities 1,103 1,450 902
Other —— 590 2
Market making 9,523 8,365 9,368
Other principal transactions 15,018 6,588 6,993
Total $14,541 $14,953 $16,361
1. Other principal transactions are included in the firm’s Investing & Lending
segment. See Note 25 for net revenues, including net interest income, by
product type for Investing & Lending, as well as the amount of net interest
income included in Investing & Lending.
2. Includes a gain of $211 million on the sale of a majority stake in the firm’s
European insurance business.
128 Goldman Sachs 2015 Form 10-K