Morgan Stanley 2014 Annual Report Download - page 239

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,
2014
At
December 31,
2013
(dollars in millions)
Due in 2014 ........................................... $— $ — $ — $3,500
Due in 2015 ........................................... 27 3,314 3,341 1,906
Due in 2016 ........................................... — 4,705 4,705 2,942
Due in 2017 ........................................... 263 618 881 160
Due in 2018 ........................................... — 786 786 675
Due in 2019 ........................................... 118 76 194 —
Thereafter ............................................. 123 316 439 567
Total ............................................. $531 $9,815 $10,346 $9,750
Weighted average coupon rate at period-end(3) ............... 3.4% 0.6% 0.8% 1.4%
(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,
2014
At
December 31,
2013
(dollars in millions)
Due in 2014 ................................................ $— $100
Due in 2015 ................................................ 32 57
Due in 2016 ................................................ 90 36
Due in 2017 ................................................ 148 24
Due in 2018 ................................................ 14 —
Due in 2019 ................................................ 10 3
Thereafter .................................................. 50 12
Total .................................................... $344 $232
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
235