Morgan Stanley 2014 Annual Report Download - page 191

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In 2013, there were no material transfers from Level 2 to Level 3.
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for 2012.
Beginning
Balance at
December 31,
2011
Total Realized
and Unrealized
Gains (Losses)(1) Purchases Sales Issuances Settlements
Net
Transfers
Ending
Balance at
December 31,
2012
Unrealized
Gains (Losses)
for Level 3
Assets/
Liabilities
Outstanding at
December 31,
2012(2)
(dollars in millions)
Assets at Fair Value
Trading assets:
U.S. agency securities .......... $ 8 $ — $ — $ (7) $ — $ — $ (1) $ — $ —
Other sovereign government
obligations ................. 119 — 12 (125) — — — 6 (9)
Corporate and other debt:
Residential mortgage-backed
securities ................. 494 (9) 32 (285) — — (187) 45 (26)
Commercial mortgage-backed
securities ................. 134 32 218 (49) — (100) (3) 232 28
Asset-backed securities ....... 31 1 109 (32) — — — 109 (1)
Corporate bonds ............. 675 22 447 (450) — — (34) 660 (7)
Collateralized debt and loan
obligations ............... 980 216 1,178 (384) — — (39) 1,951 142
Loans and lending
commitments ............. 9,590 37 2,648 (2,095) — (4,316) (1,170) 4,694 (91)
Other debt .................. 128 2 — (95) — — 10 45 (6)
Total corporate and other
debt ................... 12,032 301 4,632 (3,390) — (4,416) (1,423) 7,736 39
Corporate equities ............. 417 (59) 134 (172) — — (32) 288 (83)
Net derivative and other
contracts(3):
Interest rate contracts ....... 420 (275) 28 — (7) (217) (31) (82) 297
Credit contracts ........... 5,814 (2,799) 112 — (502) (961) 158 1,822 (3,216)
Foreign exchange contracts . . 43 (279) — — — 19 (142) (359) (225)
Equity contracts ........... (1,234) 390 202 (9) (112) (210) (171) (1,144) 241
Commodity contracts ....... 570 114 16 — (41) (20) 70 709 222
Other .................... (1,090) 57 — — — 236 790 (7) 53
Total net derivative and
other contracts ........ 4,523 (2,792) 358 (9) (662) (1,153) 674 939 (2,628)
Investments:
Private equity funds .......... 1,936 228 308 (294) — — 1 2,179 147
Real estate funds ............ 1,213 149 143 (136) — — 1 1,370 229
Hedge funds ................ 696 61 81 (151) — — (135) 552 51
Principal investments ......... 2,937 130 160 (419) — — 25 2,833 93
Other ...................... 501 (45) 158 (70) — — (58) 486 (48)
Total investments .......... 7,283 523 850 (1,070) — — (166) 7,420 472
Physical commodities .......... 46 — — — — (46) — — —
Intangible assets ................. 133 (39) — (83) — (4) — 7 (7)
Liabilities at Fair Value
Commercial paper and other short-
term borrowings ............... $ 2 $ (5) $ — $ — $ 3 $ (3) $ 12 $ 19 $ (4)
Trading liabilities:
Other sovereign government
obligations ................. 8 — (8) — — — — — —
Corporate and other debt:
Residential mortgage-backed
securities ................. 355 (4) (355) — — — — 4 (4)
Corporate bonds ............. 219 (15) (129) 110 — — (38) 177 (23)
Unfunded lending
commitments ............. 85 39 — — — — — 46 39
Other debt .................. 73 9 (1) 36 — (55) 5 49 11
Total corporate and other
debt ................... 732 29 (485) 146 — (55) (33) 276 23
Corporate equities ............. 1 (1) (21) 22 — — 2 5 (3)
Securities sold under agreements to
repurchase ................... 340 (14) — — — — (203) 151 (14)
Other secured financings .......... 570 (69) — — 21 (232) (22) 406 (67)
Long-term borrowings ............ 1,603 (651) — — 1,050 (279) (236) 2,789 (652)
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