Morgan Stanley 2010 Annual Report Download - page 197

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MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Maturities and Terms: Secured financings with original maturities greater than one year consisted of the
following:
Fixed
Rate
Variable
Rate(1)(2)
At
December 31,
2010
At
December 31,
2009
(dollars in millions)
Due in 2010 .......................................... $ — $ — $ — $ 75
Due in 2011 .......................................... 486 2,721 3,207 2,542
Due in 2012 .......................................... 38 62 100 4
Due in 2013 .......................................... 300 234 534 963
Due in 2014 .......................................... — 14 14 53
Due in 2015 .......................................... — 577 577
Thereafter ........................................... 470 2,496 2,966 1,759
Total ........................................... $1,294 $6,104 $7,398 $5,396
Weighted average coupon rate at period-end(3) .............. 2.2% 1.6% 1.7% 0.8%
(1) Variable rate borrowings bear interest based on a variety of indices, including LIBOR.
(2) Amounts include borrowings that are equity-linked, credit-linked, commodity-linked or linked to some other index.
(3) Weighted average coupon was calculated utilizing U.S. and non-U.S. dollar interest rates and excludes secured financings that are linked
to non-interest indices.
Maturities and Terms: Failed sales consisted of the following:
At
December 31,
2010
At
December 31,
2009
(dollars in millions)
Due in 2010 ................................................ $ — $ 581
Due in 2011 ................................................ 50 500
Due in 2012 ................................................ 182 316
Due in 2013 ................................................ 1,687 488
Due in 2014 ................................................ 382 306
Due in 2015 ................................................ 23 42
Thereafter .................................................. 225 446
Total .................................................. $2,549 $2,679
For more information on failed sales, see Note 7.
12. Derivative Instruments and Hedging Activities.
The Company trades, makes markets and takes proprietary positions globally in listed futures, OTC swaps,
forwards, options and other derivatives referencing, among other things, interest rates, currencies, investment
grade and non-investment grade corporate credits, loans, bonds, U.S. and other sovereign securities, emerging
market bonds and loans, credit indices, asset-backed security indices, property indices, mortgage-related and
other asset-backed securities, and real estate loan products. The Company uses these instruments for trading,
foreign currency exposure management and asset and liability management.
The Company manages its trading positions by employing a variety of risk mitigation strategies. These strategies
include diversification of risk exposures and hedging. Hedging activities consist of the purchase or sale of
191