Morgan Stanley 2010 Annual Report Download - page 114

The tables below show the Company’s credit exposure from its corporate lending positions and lending
commitments at December 31, 2010 and December 31, 2009. Since commitments associated with these business
activities may expire unused, they do not necessarily reflect the actual future cash funding requirements:
Corporate Lending Commitments and Funded Loans at December 31, 2010
Years to Maturity
Total
Corporate
Lending
Exposure(2)
Corporate
Lending
Exposure at
Fair Value(3)
Corporate
Lending
Commitments(4)Credit Rating(1) Less than 1 1-3 3-5 Over 5
(dollars in millions)
AAA ........................ $ 351 $ 342 $ 50 $ — $ 743 $ — $ 743
AA.......................... 3,220 5,435 671 70 9,396 131 9,265
A ........................... 2,739 8,780 2,667 34 14,220 542 13,678
BBB ........................ 2,793 16,170 4,816 237 24,016 3,203 20,813
Investment grade ....... 9,103 30,727 8,204 341 48,375 3,876 44,499
Non-investment grade ........... 1,740 6,857 7,642 4,539 20,778 6,845 13,933
Total ................ $10,843 $37,584 $15,846 $4,880 $69,153 $10,721 $58,432
(1) Obligor credit ratings are determined by the Credit Risk Management Department.
(2) Total corporate lending exposure represents the Company’s potential loss assuming the fair value of funded loans and lending
commitments was zero.
(3) The Company’s corporate lending exposure carried at fair value includes $11.2 billion of funded loans and $0.5 billion of lending
commitments recorded in Financial instruments owned and Financial instruments sold, not yet purchased, respectively, in the
consolidated statements of financial condition at December 31, 2010. See Notes 8 and 13 to the consolidated financial statements for
information on corporate loans and corporate lending commitments, respectively.
(4) Amounts represent the notional amount of unfunded lending commitments less the amount of commitments reflected in the Company’s
consolidated statements of financial condition. For syndications led by the Company, lending commitments accepted by the borrower but
not yet closed are net of the amounts agreed to by counterparties that will participate in the syndication. For syndications that the
Company participates in and does not lead, lending commitments accepted by the borrower but not yet closed include only the amount
that the Company expects it will be allocated from the lead syndicate bank.
Corporate Lending Commitments and Funded Loans at December 31, 2009
Years to Maturity
Total
Corporate
Lending
Exposure(2)
Corporate
Lending
Exposure at
Fair Value(3)
Corporate
Lending
Commitments(4)Credit Rating(1) Less than 1 1-3 3-5 Over 5
(dollars in millions)
AAA ........................ $ 542 $ 233 $ — $ — $ 775 $ — $ 775
AA.......................... 3,141 4,354 275 — 7,770 80 7,690
A ........................... 3,116 9,796 1,129 548 14,589 1,918 12,671
BBB ........................ 4,272 16,191 3,496 164 24,123 4,548 19,575
Investment grade ....... 11,071 30,574 4,900 712 47,257 6,546 40,711
Non-investment grade ........... 749 6,525 6,097 3,322 16,693 9,517 7,176
Total ................ $11,820 $37,099 $10,997 $4,034 $63,950 $16,063 $47,887
(1) Obligor credit ratings are determined by the Credit Risk Management Department.
(2) Total corporate lending exposure represents the Company’s potential loss assuming the fair value of funded loans and lending
commitments was zero.
(3) The Company’s corporate lending exposure carried at fair value includes $15.6 billion of funded loans and $0.4 billion of lending
commitments recorded in Financial instruments owned and Financial instruments sold, not yet purchased, respectively, in the
consolidated statements of financial condition at December 31, 2009. The Company’s corporate lending exposure carried at amortized
cost includes $850 million of funded loans recorded in Loans in the consolidated statements of financial condition.
(4) Amounts represent the notional amount of unfunded lending commitments less the amount of commitments reflected in the Company’s
consolidated statements of financial condition.
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